Come fly with me, let’s fly, let’s fly away
If you can use some exotic booze…
Once I get you up there where the air is rarified
We’ll just glide, starry-eyed
Once I get you up there I’ll be holding you so near
You may hear angels cheer ’cause we’re together – Frank Sinatra
A shortened holiday week, low volume, Janet Yellen issuing a license to kill, and a positive jobs report (ignore all else such as a lower ISM) and buyers ensured the weekend headline celebration that was sought was achieved:
Jim Cramer was busy telling people to now get more aggressive and buy more stocks. Now. Ok. And maybe he is right. Down days, down weeks and down months are extinct and everybody, including central banks and corporations are buying the same equities. Oddly enough volumes keep shrinking and most say it is because of slow summer seasonality. Maybe that’s true, but since free money is handed out on a daily basis one would think more people would show up to collect it.
For now the charts are telling a uniform story: The $NYSI is at 100% max overbought, tech stocks are at the highest RSI readings in recent memory, VIX products including futures and the $VXO are scrapping at record lows and deviations from long time moving averages are at record highs. I know of no precedent in history where these combined conditions make for a good point to get more aggressive, but I’ll let the reader judge for themselves. I, for one, still believe in the relevance of charts. And, in aggregate, they have one uniform message: This could really hurt.
But we live in a new world. I looked at my unmade bed this morning. I was thinking about putting it up for auction. Get with the program and come fly with me: