Last Friday after the futures dumped some 14 points after the payroll report, I stated that the weakness in equities wouldn't last for long. Well even blind squirrels can find a nut every once in a while, as I called that one correctly. Equities clawed all the way back and finished modestly lower. This was a huge victory for the bulls. From this, Asian and European markets were stable overnight.
/tradersutra.blogspot.com/2009/10/bad-payroll-print-will-pressure-futures.html
As I walked in this morning futures were 6 points higher. The very simple fact that not even a bad payroll report could knock the market down leads me to believe that more gains are in store for the averages the rest of the month. The overall strength in equities just fortifies my general theory about whats going on.
tradersutra.blogspot.com/2009/09/just-theoryreally.html
There is just far too much positive sentiment out there at the moment. The entire market is gunning for 10K. As I have stated before, Institutions are all in at the moment. As the market accelerates higher, the general media attention to that 10K figure will be a powerful carrot for the ones who have missed the entire rally. Only after they sucker the masses into the market above 10K, will be get any change in direction.
I will stand by this prediction until I am proven wrong. The next shoe to drop for the bears are the Leveraged Short ETF'S. I see a stealth move and collapse in these absurd trading vehicles, which will only propel the general market higher.
After this move, we will have a swift 10%-15% correction.
Too much positive sentiment? I believe you mean unlimited liquidity.
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