a move that started in the last week of Dec 2018,
This weeks rally has carried price much further than expected,
and there-in lies the crux.
Bears are now trapped, a point I made previously, as price continues to go against them,
creating a new market character of shorts now needing to liquidate/capitulate.
By simply rising day after day, with no end in sight,
this is the kind of rally that can ultimately bankrupt a leveraged short,
so even strong handed bears on the market are now concerned.
sentiment and had reached extreme levels in late 2018
creating enough fear in the market to create a meaningful bottom,
that now appears may hold for some time.
requires a trader to follow the trend,
or suffer the consequences.
bets on the market are counter trend right now,
and that continues to pressure the shorts as the S+P is reaching 2600 Resistance.
This week's rally is being confirmed by ,
as the accompanying chart of the CMF shows.
The market is the great equalizer.
First it was the bulls, that were tested, some beyond their ability to withstand,
and now it is the bears turn to get the same treatment in return.
Until the market senses that the bears have fully capitulated,
the market will continue to rise.
And at this point,... no one knows where, or when ... this rally will end.
Trading on common sense rather than greed is the way to go. The common sense is that slowly, over time the equities market is now manufactured and manipulated to support itself with endless quantitative easing... for now the market has won and like spoiled children getting more of what they want... but quietly behind the scenes the market sort of knows that and will ultimately reward the patient.
And when the world finds out real money can’t simply be made by pressing buttons I might get a little more than my current return- which at least for now has been a little more than break even!