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Want to know why? Because I’ve never had so little committed to it. Honestly. The amount of “bets” I’ve got on this market is a sum of money I could fit in my pockets without causing people to point at me. The market could absolutely crash, and I’d make hardly anything on it. So………..it’s about to get blown to pieces. That’s how the universe works.
Let’s get away from my self-image as a cursed individual and look at some specific charts.
The Dow Jones Composite, which hit a lifetime high intraday, is sporting a cool little shooting star pattern. I think it’s down-time.
The new hero for the bears (if there are ANY out there left) has been tech stocks, which peaked weeks ago. We’ve got a clean reversal off that horizontal.
The NASDAQ 100 has a similar setup, although much weaker. Take note of how much lower the price action was compared to the horizontal. It has totally lost its mojo.
One of the more remarkable channel failures I’ve ever witnessed has been the semiconductor index, which had a pixel-perfect repulsion on Wednesday beneath its failed trendline. Look out below: semiconductor stocks are comically overpriced. We’re talking hysterical levels of overvaluation.
Between the relatively bullish extremes of the Dow Stocks and the relatively bearish extremes of NASDAQ stocks is the S&P 500, which continues to church within its ascending wedge.
My persistent favorite, the oil & gas sector, got absolutely clobbered on Thursday, thanks to a remarkably horrific plunge in oil prices. I think there’s tons of room left to the downside.
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