Exactly one week ago I suggested, "We have entered a brief period of suspended animation during which time all manner of divergences among various technical measures corresponding with the most recent manifestation of the market's massive short squeeze unfolding since March '09 bottom ... likely will develop."
Precisely what we're beginning to see more or less everywhere. And probably what we will see a whole lot more of going into expiration.
Just look at every underlying technical measure typically presented here. You will see that, despite the market's continued rise, evidence of a technical breakdown is beginning to form across the board.
And what is up with elevated NYSE volume these past three days? The index has gone nowhere in the interim. More smart money bailing out, passing their shares to mutual fund money managers "desperate" to jump on board a stricken ship?
Finally, as per what's to come following top, check out the extent to which confusion prevails in responses to the following missive highlighting the probability of a pending market collapse...
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
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