Unfriggenbelievable! You would think that a new YTD high in the SPX would bring out some humility from the bearish folks who have been getting slaughtered like turkeys on thanksgivng....but no. They STILL are stubbornly refusing to acknolwedge the notion that the stock market is signalling recovery. Browsing the message boards and blogs I saw no change in attitudes whatsoever....instead all I saw was even more conviction from these bagholders. I saw one short say "this is a great time to short...too bad I have no more money to do so". LOL! can you believe that comment? You would think that by being broke and therefore wrong in a big way about the market that he might be inclined to rethink his views...but no. I suppose the only way these bears are going to change is by brute force just like that girl I mentioned in the previous post.
I took a look at the Rydex data and to my suprise, there was no capitulation at all from these wrong way jokers....in fact, it was the opposite! There was a drop in MM funds but these funds went into the bearish inverse funds which means bulls stood pat while bears increased their bets in the face of new YTD highs! This is so bizzare! So then, now what with the markets? I'm thinking that the stubborness of the trading community to embrace this rally is going to counteract the extreme ST overbought condition of the market which means we could see 1-3 days of sideways or moderately higher action before making yet another push higher to about 1050. These situations are very, very tricky and so the best thing to do is take it one day at a time and tread carefully. I'm not for a second going to drop my gaurd thinking that we can't see another 2% drop like last Monday - the extreme ST overbought condition gives the market room to do so...but when you see this sort of top picking its makes it much less likely to occur and much more likely for another squeeze higher to occur after mabey a day or two of churning.
Should be an interesting week.
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