……..confuse as many people at once as possible. Bulls, bears, Janet Yellen, Cramer, Mr. Obama and everyone else in between.
The chart above is as clear as night and day. Despite this range bound market, institutions and hedge funds (arguably the smart money) have been dumping at the fastest pace since 2008. Plus, there is a massive commercial short interest in the E-mini S&P contracts and a massive long position in VIX. As per our weekend COT updates.
Yet, the market remains at elevated range bound levels…..why?
For two reasons. First, it continues to accumulate energy for a big move ahead. Second, it is trying to confuse as many people as possible. I am getting first hand evidence that numerous bears are beginning to capitulate. At the same time, most bulls have never had their hopes higher.
In other words, the market might be Flushing out the bears before crushing the bulls
You know, that’s quite a reasonable explanation from my vantage point.
