From this morning's letter:
Last time, I said that we had e a 2X Sell and that normally, a 2X Sell and an Options Oscillator Sell on the same day would be likely to get right immediately but now, I thought and think that with the obviousness of the break higher, as well as the breadth confirmation, these sentiment readings are as likely to be indicative of a "point of recognition" as any sort of over-confidence. I doubted that we'd see much weakness. I suspected that we were about to witness a rare, parabolic rally and I advised that regular Sell signals were less likely to work out. Last night, the Put/Calls looked superficially Bearish for the market, but the Options Oscillator, which measures opening transaction was Bullish. Also, the OEX "smart money" was Bullish. Additionally, the VIX spiked on a flat day. All of this is a sign of folks either not buying into the move, or worse, fighting it. I also note that ST and IT Momentum "backed into" Sells. When momentum goes flat and triggers a Sell, I've found it's almost always a fade, especially in a strong up trend--it only serves to give Bears hope. This morning, the FL/FS is neutral, and there still aren't enough short Bears to look for a top, but it is a lot closer--but close isn't good enough. Don't fight this rally. Top-picking is poorly rewarded, if at all."
I'm going to try to get a full piece up in the MA are as well as on StockCharts. We're witnessing something rare and historic, I suspect.