Leadership

Here is Dr. Brett's list of the divergences now beginning to pile up:
http://traderfeed.bl...rket-radar.html

John, I just want to know when the next turn date is. Yes, the credit spreads are not improving, but the financials are cooked in my opinion, the rates will be forced higher from here, USD is reacting slowly as well... This is most likely a terminal rally, right? Then check this out, the consumer discretionary stocks are leading right behind materials since the Nov 3 low!?! I mean what is going on here? The credit conditions are supposed to be not improving and yet the consumer discretionary is now moving up, actually leading? How? Then the sectors following are health care for the obvious reasons, industrials and technology. I am mean we need to see the financials absolutely crumble, energy take a massive charge upward and the materials continue to lead in order to have a big big turn, none of these are present. So, if we turn down from here, I will be appalled, I am telling appalled... Perhaps I will!

Edited by arbman, 11 November 2009 - 08:03 PM.

brett is right on the money..something doesn't smell right here

Here's a happy little global news item called "Japanese Credit Default Swaps Seen As Unraveling":
http://www.bloomberg...6...oHvEA&pos=4

I'm sure such an "unraveling" would have no effect on global markets.

Here's a happy little global news item called "Japanese Credit Default Swaps Seen As Unraveling":
http://www.bloomberg...6...oHvEA&pos=4

I'm sure such an "unraveling" would have no effect on global markets.

You know how the CDS market works... They will sell you the insurance on the way up and then they will ask the govt to pay on the way down... typical of bankers.

Check this out, everyone is well adjusting their lifestyles to the tough times now...

The Onion always comes closer to the truth than any regular news outlet. That's the thing about Japan -- the government doesn't have any more money. They've been printing yen for 15 years, but the deflation is bigger than the liquidity. When the swaps unravel, it'll be every man for himself.

[quote name='andiron' date='Nov 11 2009, 05:00 PM' post='492207']
brett is right on the money..something doesn't smell right here


in any sustained move, this is fairly normal. Internals peak out further into the rally and then potentially go thru a process of making lower highs as price makes new highs. This is happening now. The Dow is making new highs and most other things, index wise, are not. Its usually a sign of an aged rally, but as we are seeing, as a bear its still hard, as this process drags out.

"We may see the volume expand to the upside next instead!" We MAY, or you could look at what HAS actually already happened volume wise-which would be my preference-it's not too bueno. There has been an absolute ton of distribution on this last run up, as well. The DOW has led the last bit-including breaking it's old high today first, and no-that's not the type of leadership I'd be looking for to continue a run up. The trin Monday said Squeeze all over it-not new buying. Everything looks great at the top ( breadth here excluded, LOL), especially to mom and dad-who are paying up for calls like we are at a bottom-while those silly index players are sitting at 1.49 I'm only trading this market VST, and from both ends-but I can't say I share your enthusiasm for upside from here-risk reward seems quite skewed the other way. I shorted the QQQQ's at the close today, I'm expecting a bit of volume expansion myself Good trading to you, my friend.

Take no prisoners, this is how this rally will end. We will go so parabolic at the end that everybody will believe in it. The bears are ignoring one sign after another, everything honestly. We could not even break below the swing lows one month after another. The major cycle low came and gone, nobody cares. We will not have another demoralizing Thanksgiving, not this year. You won't get three in a row... This is going higher until mid-December, one way or another. We will rally with whatever left one by one, we will rally without breadth, without growth, without jobs and finally without stocks. This is free money whoever wants to have some, I think you don't, I hope you won't mind if I take your share in that case! Best, arbman