The S&P500’s Stairway to Heaven

Stunning price action during these low volume dog days of August.   The market keeps marching higher and just won’t go do down to allow the under invested an opportunity to get long.

Ugh! The summer night sweats of a money manager short his/her index!

Only 7 points to a new post crash high, which may or may not act as a bit of short-term resistance.   Note the 50-day s.m.a is ready to cross over the 100-day and the bond sell-off, reflecting the flight from the flight to quality and fear trade,  is confirming the rally in big cap stocks.

The 20-year TBond Ishares (TLT) bounced off its 200-day today, but is down 8.5 percent since July 25th.   What’s that about 3 years of yield or coupon?   Markets move fast, are merciless, and love to humble the certain and proud,  mon ami!

Just one more thing.  Everyone, and we meeeeeeean everyone,  wants to sell this market.   And you know what that means.

(click here if charts are not observable)

This entry was posted in Bonds, Equities and tagged , , , . Bookmark the permalink.

4 Responses to The S&P500’s Stairway to Heaven

  1. Great piece – we’ve reposted it at MacroBusiness.

    Cheers and thanks

  2. Yeah, if you look at sentiment on Twitter it’s almost all selling. If we break above 1422 short covering will drive the market higher at a fast clip.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s