Never More Clear in Twenty-Five Years ~ The Risk Averse Alert

Wednesday, June 23, 2010

Never More Clear in Twenty-Five Years


You understand the subscription price you must pay for insights provided here. This price in truth demands but one thing: your courage to step up — step to the plate — in a moment you simply were made to recognize.

Is this not why you are reading me? You understand that "it takes buying to put them up" ... and you clearly see that over the past decade a transfer has occurred from those who can put up stocks to those who cannot ... in a Great Distribution.

So, you discovered how market technicals shine light on the movement of money into weak hands. Lo and behold, this enlightenment quite agrees with your better sense of things, and indeed, shows the stock market extraordinarily vulnerable, thus confirming your negative view quite conclusively.

Now step up. Put your money where our mouth is. We in fact have a relationship to seal in this extraordinary opportunity to raise your courage of conviction. For so very little might the glory of your legacy find its lasting promise! You, indeed, should be the one who saw great danger ... and made a killing because you took a tiny, calculated risk.

Have faith in yourself — your ability to distinguish not so much a diamond in the rough, but rather plain reality as the world tragically plays stupid. This is your moment to shine.

So, step up because she is about to blow...


$SPX

Weakness, weakness everywhere and not a drop of fear. Were you in need of overwhelming evidence bolstering your conviction prices would fall of their own weight, well, there you have it.

Both relative strength and momentum, now turning over, decidedly remain on the sell-side of their respective ranges, and this while boldly diverging from the S&P 500 at recent lower highs.

We are seeing this sort of thing everywhere among various technical measures I present here from time to time. These bring great substance to my view suspecting correction of the market's initial turn lower from its late-April top largely has passed. In this process such technical balance has been established as decidedly reveals the time elapsed only a period drawing in the weakest of hands.

Yet again we see complacency among a vast majority of holders who fail to recognize the urgency of this moment. Clinging to wild fantasy skillfully spun with great consistency over many decades these tragic souls, of course, are that far greater number among us whom I call "suckers."

The thought of selling some greater bulk of equity positions (if not the entirety) still escapes their desire — this after such a monster advance off March '09 bottom ... which itself followed an historic collapse — holding all the more in the midst of having made absolutely no progress over the past 7-8 months, let alone the past twelve years! This, technically speaking, makes the moniker most fitting.

Not a drop of fear. Perfect marks for a bull trap!

Yet by their slow will to abide belief further — their faith shaken for over a decade ... with May 6th's "flash crash" now a cherry on top — confidence among suckers, although dying hard, still might be objectively characterized razor thin. The slightest upset risks rocking the stock market hard.

Combining all things on several technical fronts, that is the unanimous message.

With more fundamental risks than you can shake a stick at running all the way up the chain of command and reaching deeply into the political layer where the last line of cover presently finds itself providing transparency only to an erupting tempest, has there ever been a moment when a "third wave of a third wave" (i.e. wave (3) of (C)) might suddenly develop?

Not in my twenty-five years experience has risk in the stock market appeared so incredibly high. Separate yourself: distinguish our relationship and step up right now.


Fast Money
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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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