the negative DI line broke above the positive DI line today and is also above the ADX today for the first time since Oct 15 th. Remember what happened around Oct 15 th? Market began a major correction until mid November.
RUT top is in for the year. Even if SPX makes a new high, which it could around 1580-1590, the RUT has fallen too far to recoup its old high. Well, maybe it makes a new high by like 5 but it won't be worth the risk.
Sorry to get political, but if the deflationary forces of the republican tea pary get voter favor, in my thinking, cash would be king. I lost alot in 2008. It is ironic that republican's push gold in their commercial's on talk radio, while their policies would cause the price of gold to go down. 90% of talk radio are in the control of republicans. Only Mr. Bernanke is keeping housing and stock's from tanking, in my thinking.
I lost nothing in 2008. I had a really bad day in 2007 summer of when bald moron Bernanke lowered rates to try to save the bubbles. I was livid for I could, in a minute, see out futures. Was I ever bang on. I was all cash all of 2008. In 2009 I actually called tghat big up 497 day, to the day, and went long (yes there was quite a bit of luck in the timing my friends laughed at me when I said it. They were not laughing the next day suddenly I was an undeserving guru). I went back to work for Fidelity for 3 years knowing the $$ in the market would not be there. strengthened by trading capital, and started back on my own in 2011.
Now, here we are making the same mistakes and here I am today sitting all cash but for a position in the vxx I have been building for 3 weeks. This ends soon, and very very badly. Why so many trust the same crooks who crashed us in 2008 know what they are doing are delusional and will soon be harshly awaken.
see my post yesterday afternoon. Dow up 100 R23k was up 2 at the time, a divergence CNBC of course ignored. They have become so completely pathetic they are unwatchable after Joe Kernan leaves. I have to turn the sound down mostly problem is they have info and guests I sometimes want and because they are the governments propaganda mouthpiece ypu need to watch the to determine what the powers that run the market have decided the story of the day should be to justify the contrived move of the day.
Sadly they cannot even get data right they will go hours with wrong data on the screen. Just look at FV on the Dow and Naz futures. A 2 your old would see something doesnt make sense. Oh well, such is the world. Automated to end human incompetence.
Speaking of talk radio, I love satire and commedy. Mr. Phil Hendrie is my favorite radio talk show host. He made a satire of Art Bell yesterday. Soon after his wife died that elderly person made a bee-line to the Philippines and married a teenager over 40 years under his age. I listen to the world famous Phil Hendrie show here in Virginia, via 1520am Buffalo. On a side note, I am routing for Syracuse to win the NCAA championship.