A positive day with the Dow Jones up 224 points (+0.91%) and the Nasdaq up 107 points (+1.39%) 

Today’s market action was once again ideal if we consider our short-term forecast. Plus, the market was mostly able to resolve divergences we have mentioned yesterday.

If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here. 

Bullish investors are once again getting more emboldened with each passing trading hour.

The bear case for stocks is ‘so obvious, it can’t be right’

“Every bone in my body wants to sell this market,” he writes, but that bearish trade is “so obvious, it can’t be right.”

Everyone seems to be bearish, and “the investor in me agrees 100% with the skeptics who worry we are late-cycle and that risks are rising,” says Muir, who is a market strategist at East West Investment Management.

“But the trader in me is even more concerned that everyone is already positioned for this outcome,” he adds.

“Markets often go where they will hurt the most and make the majority look foolish. That path is higher — not lower.”

The proverbial “wall of worry” just keeps growing and “giving the market more fuel to rise,” he says.

My only question is, what skyscraper of worry is he talking about? Let’s look at the following charts…..

The market was severely oversold at June 28th bottom, as we have mentioned at the time, a condition that no longer exists. Other sentiment reading are somewhat misguided in terms of trying to ascertain bullish vs bearish sentiment.

The charts above are not. They are as bullish as they they have ever been. Investors are as leveraged (real money) as they have ever been and at the highest valuation level in the stock market’s history. Call it what you will. I call it swimming naked right before the tide goes out, not climbing some sort of a wall of worry.

Having said that, if you would like to find out what the stock market will do next, in both price and time, please Click Here