What a run we are having!
Of course we are thrilled because we flipped bullish last week, when it was still out of fashion and now we are following along the Trade Bot Omega-3 rally pattern that I pointed out in last Friday’s post:
Close enough, right? Of course we don’t base our decisions on pattern matching (which can give you many false positives) but when we feel the fundamentals are the same AND the market movement looks the same, then we get pretty interested in watching how that pattern is playing out! so today should be a flat day and we most likely flatline into expirations, which would be good as we still need to form a base but the question remains – do we have enough good news and data to take us back to the top of our range at 10,700 (1,140 on S&P)?
See Friday’s post for how this patten plays out for the next few weeks. The TradBots are clearly in control of the market and the volume is back to anemic as confused retail bulls are now confused retail bears as the MSM scrambles to figure out how to tell you they were right. Our friendbuddypal Jim Cramer was so wrong in his call last week that he had a little temper tantrum about it saying:
I am calling this a bad rally. This market has now become more depressing than Ethan Frome. Even the good days are now bad days. It’s almost as if the whole market is caught between 1st base and 2nd base. So we get an endless rotating short squeeze in oil, in the banks, in tech, in discretionary…. But once the shorts are done getting picked off, we’ve got no more reason to run. It is a rally that stops that a blast of future selling comes in. It is a rally that stops the moment the buyers just walk away. We used to have fundamentally based rallies – that’s not how this market works. This market is stupid. And it is hated for a very good reason. The market seems rapacious, arbitrary, capricious and downright ridiculous. It is a tale told by an idiot, full of sound and fury, signifying nothing.
Wow, Jim, I’m touched that you would use my old literary references from January in your broadcast but we’re done with…