Wednesday, October 14, 2009
New Market High, But...
The bigger they are, the harder they fall. With extreme call buying in both equity and index options, as well as a new all time high with bullish news everywhere and near 1100 on the S&P, one has to wonder: who's going to flinch? Bears have been mauled here, and the market hardly has a dip even intraday. It can only mean one thing: we will have to have a blowoff top on heavy volume. The thing missing right now is the big volume up move. It's required to signal that bears have capitulated and bulls have panicked by buying recklessly. I think there is a greater than 50% chance that the blowoff top happens tomorrow.
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1 comment:
I have seen the P/C Ratio readings as well and wondered if we are close to a temporary top. But from a longer term perspective I cannot see large optimism concerning stockprices. No one seems to really trust this upmove.
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