This Is Ridiculous

April 16, 2009 at 11:51 am  ·  Category: Technical Analysis

This market is way overbought.  It’s acting like a lot of people believe a new bull market is underway – but it isn’t.

The financials (XLF) are almost 30% above their 50 DMA.

xlf-overbought1

(Chart from BeSpoke Investment Group)

All the major indexes are right around what should be major resistance as well.

sp-resistance

nasdaq-resistance

(Charts from Michael Kahn, “The Bear Is Hiding Around The Corner” (subscription required), Barron’s, Wednesday April 15)

Have things really changed that much in 5 1/2 weeks?  Has the economy miraculously healed itself and we are now on our way to full fledged recovery? 

Come on!  This is ridiculous.  It won’t last.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 
No Responses to “This Is Ridiculous”
  • “top gun financial” eh? – i hope you don’t have any serious clients, aside from your driking buddies and your rich uncle. the market is a discounting mechanism. it was discounting away most every financial assuming none were going concerns. if you understood anything beyond the daily nonsense that is spewed by the market you would be semi-cognizant of the fact tha we were at generational lows in terms of valuation because of this. anything better than bankruptcy sees us off the 666 level.

    “this is ridiculous” is about as emotional as a headline can get…you obviously don’t have the temperament necessary to be even a semi-competent “top gun.” seriously, step away from the etrade account and go to cash.

    anon  ·  Apr 26, 2009 at 10:15 am  ·  Permalink
  • We’ve seen rallies just like the current one that have failed during this bear market: Aug-Oct ’07 and Mar-May ’08. We’ll see what happens anon 😉

    Greg Feirman  ·  Apr 27, 2009 at 7:59 am  ·  Permalink

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