There are three things which have caused me to seriously question my bearish stance:
1] The Coppock indicator's readings of a 'new bull market'
2]
Carl Swenlin's PMO indicator
3] Lowry's Reports indicating that there is no increase in selling pressure and any pullback would be caused by a decrease in selling pressure. They are basically saying that there could be a pullback but this could have some legs.
All three are pure TA and ignore the $, gold, inflation/deflation, terrorist attacks, the price of tea in china, etc.... So if as a trader, I am loyal to price action, I have to pay attention to them. The first two are long term indicators and by no means perfect ones. While the last one is an intermediate proprietary indicator from the annointed Lowry's organization.
But at the same time, I see so many other logical and reputable indicators pointing the other way. I won't list them here as I've already mentioned them many times before.
I still have conviction that the transports are way overbought here and are shorts. They have failed to keep up with the market indices (epecially $XAL) and have a high BP%. Look at BNI, R up with a tepid volume. Some have already cracked and are headed down like HTLD, CGO and EXPD. For the brave wanting to be SARS contrarians there is ZNH and CEA (as longs).
But when it comes to the general market, it is obvious that I've been wrong, or early
, but seriously, I'm confused and am opting to wait until there is a clearer picture. So I'm basically neutral (except for the deep OTM puts) but poised ready to lunge at the market with the agility of Anna Nicole-Smith attacking a buffet table.
