Damned Sentiment Data - "dumb" money is short

As long as we don't violate the Aug/recent lows, I am very short term bullish...everyone is expecting a 50 bp cut, oil is declining, and gold stocks are not making new highs while gold has.

I understand that it was the financials that profitted in the latest rally.
 
Quote from EdgeHunter:

Yes, and add that to this...

Its option expirations week with a lot of people long January put options... They are going to cover sometime this week.. and a lot of hedged short futures positions against them will be covered too... as those hedged shorts are lifted the market moves up a touch... as the market moves up a touch weak hands cover... as they cover the market moves higher... as the futures move higher weak swing hands cover... more put owners cover... and...

The market inches up and inches up until some larger size short traders get tired of watching the futures creep up and they cover and then boom large size longs jump in and extend the rally really creating a short covering rally over a day or two... so up we go into another option expiration market mechanics long rally that makes / forces late to cover put owners and futures shorts to eat their profits with a bitter saltine cracker...

not set in stone but the usual scenario for expiration week...


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There is close to a $Trillion in global liquidity sitting on the sidelines, waiting to be unleashed.

The USD is going lower, which means there may be too much liquidity coming into the system all at the same time. Lows over the next few weeks and then higher to all time highs by April. Parabolic move anyone?
 
Hell yeah

assuming we can reinflate convincingly, we haven't even had the 'fleece the public' wave yet. going to be a ton of marketing by paper profits and private equity...and 40% of S&P profits are derived from foreign markets at this point anyways...should be an easy sell
 
Just a thought: Judging from the sentiment on ET during the weekend, there should be plenty of bulls buying Monday that are potential pukers on a new leg down.

Not predicting anything of course, but it does seem like there's still plenty of hope. Proper bottoms are set when everything is hopeless and we're all going to die.
 
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