Wednesday, September 18, 2013

Silence of the Bears

Yes, Clarice, I am still alive. It's just that working on a regular blog has not gotten me any business so unless I have something to say it ain't gonna get said.

Today's Bernanke Bombshell, aka September Surprise or "Eff Yew Wall Street Smartie Pantses" rally seems to have sent the bears packing. Every post I saw on StockTwits and Twitter was "new highs - buy 'em" and I bet next week's sentiment surveys will be massively skewed towards the bullish side.

How can you...
argue with new highs? With a Dow Theory buy signal? With above average volume (finally)? And with the highest breadth reading since July? Firing on all burners, you say? Bears got their comeuppance, you chortle?

I'd call that capitulation.

Can't give away the charts I'll be sending to subscribers tomorrow  but do you get the feeling that the pendulum has swung all the way to the bullish side. There is nobody left to buy.

We will see, of course. But all we got was a reprieve. The Fed will taper. The debt ceiling fight will arrive. Obamacare exchanges will start on October 1. And bearish momentum indicators on weekly charts cannot be ignored.

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