Thursday, February 17, 2011

Weekly DMI at the highest level

Market looks invincible at this point with bulls jumping on every single dip, if you can call 5-6 points a dip. This is very bullish but very scary at the same time, if you are long, of course. I don't remember when was the last time I saw the market this bullish, this is way above April's 2010 madness. As a confirmation of this incredible bullishness the weekly DMI has jumped above April's high and is at the second highest level since 2003! As you know neither VIX nor DMI are giving very good buy or sell signals but when I hear people buying like mad AT THIS  LEVEL it's really scary. Holding on your longs is one thing and buying here it's a completely different matter. I hope things are going to work well for bulls, I don't want to see people losing money but...

It's never a good idea to argue with the market, as tempting as it is to go short it's safer to wait until you see some weakness. SPX continues to stay way above SMA 120, 27 points at the close today, but what it's really unbelievable is that it's not even touching the EMAs!

Gold and silver recovered the lost ground, silver actually hit a higher high today, that is not really surprising keeping in mind that dollar is sinking every day.

All the best!

No comments:

Post a Comment

Thank you for your feed-back