It's that time of year when the superbowl indicator is trotted out to predict where the stock market will go. With the NFC Giants beating Grumpy's Guys from the AFC the indicator predicts an up market. Yeah, and the Washington Redskins last home game predicts the Presidential winner (that one was actually perfect until 2004 - hey, just like Grumpy's Guys this year!)
There is no doubt that the bulls have the ball in the short-term and my view that last week's Fed Failure was going to be it for the dead cat bounce. Don't worry, as if anyone were, I sold my short ETF pronto when the market reversed. But now with an O'Neil follow through day triggered - despite what O'Neil's crew themselves say, we have to consider that there will be some more strength before the whole thing rolls over.
But as I sign off Sunday night with Asia in full rally mode, anything can happen. There are some severely beaten down sectors now leading the recovery but dead cats are not really where you want to pin your hopes.