Flipping Intermediate Term Bearish Now $SPY $IWM $DJIA

I didn’t want to do it. I really didn’t. But, I made the jump. After the past few days, and the rip-your-face-off rally that the shorts have endured, it was time to flip bearish for the first time since Nov. 3 — the Thursday before the election — #timestamped here and all.

401k

iwm get out.JPG

 

 

I mean look at this chart to the right. HOLY SHIT!

 

I count 9 different areas where you could have gotten out if you shorted the lows, and people didn’t. They kept rolling them up and up and guess what?

They CAPITULATED at the highs the last two days.

 

They deserved it. Listening to what the mainstream media has to say — which, by the way, they need you to listen to them — and selling the low or shorting in the hole in a new bull market that just checked back to technical support. The market makes everyone pay time and time again. And it’s going to right here, as well.

Take a look at the SPY below. It’s a weekly chart dating back to the 2008 top. As you can see, we have been building this MASSIVE, rising wedge that was resistance all of 2015. This is one of the reasons I believe we pause here and pull back in (this is more likely, than ripping straight to 250 at the top of the channel). A massive chase was underway, as you can see below, from the November lows to now. That is 10% in a straight line.

spy-weekly

 

My point: anyone that is buying this right now won’t be making money off of their investment anytime soon. It’s time for gold to bounce (finally), bonds to breathe for a second, and for stocks to at least pause. I am looking for some down-to-sideways methodical action over the course of the next couple weeks, even a 5% pullback I’ll really welcome (215 ish).

spy-daily-close

 

 

There were so many people who were under invested that got caught with their pants down and now have bought everything.

People still worried about a bubble.

People thinking that bull markets don’t last forever.

People Afraid of a Trump Win.

People scared of the Election.

People thinking that since Trump Won it’s going down.

People thinking that the market can’t keep going up.

 

I believe people in the list above are chasing higher, bigly. I also believe there is a lot of smart money still on the sidelines waiting for the pullback (which there hasn’t been one yet)…

 

I will leave you with this chart. A New bull market has started. I believe that we see higher prices in the future; however, I do not believe you chase this here as you will be an immediate loser.

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3 responses to “Flipping Intermediate Term Bearish Now $SPY $IWM $DJIA

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