State of the Market Address:

• The Dow has been stuck in a 300 point trading range (19,999-19,700) since about December 12th of 2016. Either distributing at the top or consolidating.
• Shiller’s Adjusted S&P P/E ratio is at 28.15. Arguably the second highest level in history (if we adjust for 2000 distortions) and right behind 1929 top at 29.55.
• Weekly RSI at 69.14 Remains at overbough levels. Daily RSI is at 53.21 – neutral.
• Prior years corrections terminated at around 200 day moving average. Located at around 17,000 today (on weekly).
• Short-term MACD is beginning to roll over.
• Weekly stochastics remain at 93 and slowly declining. Extremely overbought level associated with prior market peaks. Daily at 33.75 – quickly approaching oversold levels – suggesting a bounce.
• Last weeks CTO Reports suggest that commercials (smart money) are shifting their positioning to net short.  For instance, the Dow is 5X, the S&P is at 2X and the Nasdaq is at 4X short. That is a significant short position against the market.
• Demand for VIX has spiked. Two weeks ago investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22. Commercial VIX position is at 5X long.

In summary: For the time being the market remains in a clear bull trend. Yet, a number of longer-term indicators suggest the market might experience a substantial correction ahead. The market remains at extreme valuation levels and severely overbought on weekly charts. Plus, the “smart money” is positioning for some sort of a sell-off. Short-term, the market has resolved its severely overbought conditions. Suggesting that either a bounce or another push higher might be in the cards. A complex setup.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.

State of the Market Address:

• The Dow has been stuck in a 300 point trading range (19,999-19,700) since about December 12th of 2016. Either distributing at the top or consolidating.
• Shiller’s Adjusted S&P P/E ratio is at 28.15. Arguably the second highest level in history (if we adjust for 2000 distortions) and right behind 1929 top at 29.55.
• Weekly RSI at 69.14 Remains at overbough levels.
• Prior years corrections terminated at around 200 day moving average. Located at around 17,000 today.
• Short-term MACD is beginning to roll over.
• Stochastics weekly remain at 94.93 and slowly declining. Extremely overbought level associated with prior market peaks.
• Last weeks CTO Reports suggest that commercials (smart money) are shifting their positioning to net short.  For instance, the Dow is 5X, the S&P is at 2X and the Nasdaq is at 4X short. That is a significant short position against the market.
• Demand for VIX has spiked. Last week, investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22. Commercial VIX position is at 5X long.

In summary: For the time being the market remains in a clear bull trend. Yet, a number of indicators suggest the market might experience a substantial correction ahead. The market remains at extreme valuation levels and severely overbought on weekly charts. Plus, the “smart money” is positioning for some sort of a sell-off. If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.

State of the Market Address:

• The Dow has been stuck in a 300 point trading range (19,999-19,700) since about December 12th of 2016. Either distributing at the top or consolidating.
• Shiller’s Adjusted S&P P/E ratio is at 28.15. Arguably the second highest level in history (if we adjust for 2000 distortions) and right behind 1929 top at 29.55.
• RSI at 66.63 Remains at overbough levels, but slowly declining.
• Prior years corrections terminated at around 200 day moving average. Located at around 17,000 today.
• Short-term MACD is beginning to roll over.
• Stochastics remain at 93.43 and slowly declining. Extremely overbought level associated with prior market peaks.
• Last weeks CTO Reports suggest that commercials (smart money) are shifting their positioning to net short.  For instance, the Dow is 5X, the S&P is at 2X and the Nasdaq is at 4X short. That is a significant short position against the market.
• Demand for VIX has spiked. Last week, investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22.

In summary: For the time being the market remains in a clear bull trend. Yet, a number of indicators suggest the market might experience a substantial correction ahead. The market remains at extreme valuation levels and severely overbought. Plus, the “smart money” is positioning for some sort of a sell-off. If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.

Here is an idea for President Elect Trump to bring American jobs back.

It is foolproof and guaranteed to work.

Start an actual war with China. And not some flimsy trade war, an actual shooting war. Just imagine all the companies that would have to relocate back to the US.

Plus, wars are great for the stock market….or so they say.

Before you dismiss the above as sheer insanity consider what Rex Tillerson, the next Secretary of State, had to say…..

China had allowed it to “keep pushing the envelope” in the South China Sea and added that “we’re going to have to send China a clear signal that first the island-building stops and second your access to those islands is also not going to be allowed” and that putting military assets on those islands was “akin to Russia’s taking Crimea” from Ukraine.”

Understandably, the Chinese are not happy.

Chinese state media slams Tillerson over South China Sea

“Tillerson had better bone up on nuclear power strategies if he wants to force a big nuclear power to withdraw from its own territories,” the unbylined opinion piece said on the paper’s English-language site. It concluded that Tillerson’s statements were “far from professional.” “If Trump’s diplomatic team shapes future Sino-US ties as it is doing now, the two sides had better prepare for a military clash.”

I am just wondering. With 7 days left in the White House, will President Obama have enough time to start a war with Russia …….Russia says US troops arriving in Poland pose threat to its security or will we have to wait a few more months before the Chinese are on the receiving end of the US Military Industrial complex.

One thing is certain, fun times are ahead.

Breaking News: CNN confirms, Donald Trump is an ex KGB Agent. Code name…

If you ever wish to torture me, turn on CNN and make me watch it for more than 20 minutes.

If you have missed it, President Trump has delivered a big bit down to most prominent media outlets, and CNN in particular, in yesterday’s press conference. Here is the video.

I couldn’t agree more and and that’s where it gets interesting.

Make no mistake. The Elites and their corporate media puppets will not go quietly into the night. This war is just beginning….

Washington seems on brink of ‘civil war’ as elites fuel anti-Trump hostility – former German MP

“When you see the situation in Washington, I think they are not willing, those who lost the election, to accept the new president whose name is Trump… What’s going on in Washington sounds like the beginning of a civil war,” said Wimmer, who is a former MP with Angela Merkel’s Christian Democratic Union (CDU), and also served as vice president of the Parliamentary Assembly of the Organization for Security and Co-operation in Europe (OSCE).

I guess the only remaining question is, what kind of an impact will this war have on the stock market? I think we are about to find out.