The stock market got off to a roaring start today – or did it? Up 1.5% to new highs on sub-average volume? And that average has last week’s anemia included.
Here is a chart I stole, er, borrowed from Tim Knight’s Slope of Hope blog.
Just in case you cannot see the attributions, this is an Elliott Wave international chart created with CQG and Investors Intelligence data. The point is that there are no bears anywhere!! Sentiment is at its most bearish since before the crash of 1987!
I have long said that things are too rosy in sentiment land and while sentiment is never a trigger for buying or selling it does create conditions for things to happen. Right now, this market is running on government sponsorship. When the whiff of its removal tickles trader nostrils, I am afraid 300-point Dow down days are in our future again.
As for today’s Barron’s Online column, I looked at the transports again and there are plenty of crack all over the place. So are there problems in retail and multi-industry conglomerates and the banks still suck. Feel like an economic recovery to you?
