…it is time to start getting ready to possibly short this market. The churning on the Nasdaq, distribution days mounting up on the indexes, the short scans increasing, the long scans decreasing, and the recent up/down volume in the market clearly is pointing to a market either at the end or near the end. On top of that, we have EPS/sales numbers coming in that are really really good. This is exactly how markets top. Earnings/sales are always the best AT THE TOP. So unless the numbers are going to get better (which they could), we have probably seen the best of the non-stop rally. In 2000 the numbers at the top for internet/semiconductor stocks were just amazing and everyone thought it couldn’t possibly stop. However, the charts clearly told us that the stocks and market was topping. Now we have bank stocks reporting amazing numbers that are making the crowd cheer while at the same time their stocks are just being torn to shreds. Oil stocks did this and gold stocks are also doing this and it is no shock that these names dominate our short scans. Just look at the possible future shorts that have shown up: EXC AU SPWRA STE AYE XOM PBI MFE HSY FXI NYX CS MS NEM DB PBR OI FCN CTAS FPL GG RGLD ABX AEM VMC JCOM PWR RBA FORM FTE EXH. Let’s also not forget the non-stop talk of China being an invincible market. Recent Chinese stocks, along with FXI, are hinting it isn’t going to escape either. Let’s keep our eyes out for future shorts. They appear almost ready to go.
new short positions: none
none…for now
