"Technicians are virtually crowing about the so-called seasonal setup for stocks this year"
"this year, technicians say the market trend was already strong, and it appears little can stop it now that the best time of year is here"
"In terms of sentiment, the difference between bulls and bears hasn't been this high in 30 years, according to the latest Investors Intelligence reading"
Bulls in this week's II survey totaled 63.5 percent against just 14.4 percent for bears. That's a spread of 49.1 points, well above the level the editors believe represents potential danger in the market.
A spread above 30 points signals "elevated risk" while 40 points calls for "defensive measures," according to II's formula.
A spread above 30 points signals "elevated risk" while 40 points calls for "defensive measures," according to II's formula.
Meanwhile on the topic of today's Fed meeting, below I mapped the 2017 Central Bank meetings against the S&P 500. The way CasinoNomics works is that you buy the S&P futures leveraged 10x two weeks ahead of the first monthly CB meeting. Then you sell when the last Central Bank meets for that month. HINT: That would be today for this month. Then you collect your 4,000% annualized return without a nickel of drawdown, rinse and repeat until next month. That's at least what Skynet does, I can't speak for anyone else. Of course a real shill holds the entire time and prays this isn't the time when the 50 day breaks...
Which gets us back to the topic of melt-ups. As we've just been informed, CasinoNomics is stricly about momentum. Nothing else matters - not fundamentals, not valuations, and definitely not the 'Conomy. Momentum is defined by a rising uptrend line. In a blow-off top, the uptrend line goes vertical, which leads to loss of momentum. As long as the uptrend doesn't break, you don't get a repeat of the last two times when stop losses triggered meltdown...
"We're waiting for the end of year melt-up to begin"
"Tell us when it starts"
"The Fed is tightening on both ends for the first time in a decade- short rates and long rates - and that's always bullish...
"The entire world is tightening for the first time in over a decade. I can see the melt-up now"
