I enjoyed last night as I read samplings from those same uber bears, the ones incredibly brilliant enough to survive this historic bull market shorting every stock under the sun, writing about how the market was on the verge of collapse. Perhaps one day the wolf will come and devour us trend traders, but for now the boys crying for continued weakness continue to get spanked.
As I opined last evening, the last financial crisis was a tremendous, possibly once in a life time buying opportunity for stocks, not the time to be selling. If that crash is coming... bring it on. We'll ride it down with the bears, which brings me back to those boys crying wolf. Those vocal cries of yesterday turned into outright tears today. Like almost every other dip in 2015, yesterdays losses were swiftly reversed. If there was one chart that epitomizes 2015, or puts 2015 into a nutshell, I think the last two days are it.
Could today have been any different? How many times have we seen the market completely negate a previous days weakness? Rip, dip, how about a flip:
No matter how you cut it the S&P500 is trending up. The recent action and grind to record highs has made trading individual names that much more important.
A few things to watch over the coming weeks:
- The VIX is coming together and is setting up for a sharp move out of this formation.
- The US Dollar index has seen a strong recovery rally after pulling back from 100+ level. The most likely scenario I see is continues consolidation which would probably be the best case the stock market to see fresh record highs.
- Bonds. The bond market is giving more mixed signals than a High School girlfriend. The inflection point is here. Is it time for the Prom? Or are you staying home with Mom?
Have a great night - see you tomorrow in the chat room. Where I being my dry sense of humor and baritone vocals on a daily basis.
Also check out todays unusual option action.