If you believe hedge fund manager John Paulson's $2.7 billion purchase of shares in Bank of America is bullish for banks, financials, and the stock market at large, I have two words for you: Peloton Partners. This when U.S. home foreclosures set a new record in July? (Nice call on the June 30th housing bottom, Shemp!)
If you believe CNBC playing up this BAC story is anything other than an attempt to draw in suckers ... if you believe Shemp's Citigroup "analysis" (speaking of which, I would not be the least bit surprised if C fails to reach Cramer's $6 target) ... then here, read this book ... you'll find more truth about what's going on. Enough about Paulson's crap shoot and Shemp's crap...
Yesterday's analysis showing the S&P 500's RSI and MACD performance similarities from October 2007 top to present versus the October 2007 top to May 2008 period is meant to suggest the current counter-trend rally is but a second wave of five waves down from October 2007 ... much as the S&P 500's counter-trend rally from March 17 - May 19, 2008 was a second wave of five waves down from October 2007 - March 2009.
It comes as no surprise, then, that certain technical measures are giving their best readings since the October 2007 top. This is, in fact, a natural phenomenon in the framework of the Elliott Wave Principle. That echoes of sentiment underlying the market's advance into its October 2007 top are plainly evident at this point in a bear market whose worst is yet to come is to be rather expected from the dull masses who generally possess neither the courage nor the wisdom to see the Emperor has no clothes.
Boy, does it look like May '08.
Good luck finding those suckers, CNBC! Looks like they're all in...
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