- Super-bear Nouriel Roubini turned bullish yesterday.
- SentimenTrader basically gave up on calling a top despite many of his indicators pointing to excessive optimism.
- On February 1 the S&P 500 closed at 1324 and the NYSE scored 302 new highs. Yesterday, the S&P 500 closed at 1347 and the NYSE scored 157 new highs. This is a negative divergence and the same can be seen at the Nasdaq.
- I am starting to feel like an idiot being negative.
- The 10 day moving average of the CBOE put/call is now firmly in sell territory
- Hulbert Nasdaq newsletter writers now have their highest ever 3 week average recommended exposure.
- Rydex traders are excessively bullish.
- Last week was the highest week ever for junk issuance
Highway To The Danger Zone
In recent years momentum has carried markets further in both directions as both rallies and declines seem virtually endless. Indicators that I have been using for years to detect counter-trend moves have suddenly stopped working. While it has become more difficult to anticipate counter-trend moves I have not given up. The list of reasons to be wary of the market in the short term is growing: