Advertisements
Markets – Macro – Stocks – Charts – Alerts

Screaming Red Flags

red flagsIt’s the Wednesday after Japan’s massive QE announcement last Friday. And it’s the day before the ECB may do the same tomorrow. Predictably markets are drunk with liquidity and anticipation and at new all time human history highs for the $DJIA. But more predictably now are the unanimous calls for higher prices. Ron Insana just penned a victory piece for CNBC, Dennis Gartman has taking back his bear market call, and Goldman Sachs is out declaring a crash a very low probabilityWell if that doesn’t convince you I don’t know what will.

I just bring up these examples to highlight the sentiment we find ourselves in and I want to outline some charts that could be viewed as screaming red flags, but you won’t hear any of this from the above mentioned parties of course or any of the bull parade back out in force on twitter and CNBC. All you hear is bullish seasonality. Buy the highs.

Hey maybe they are right, but I thought it would be nice to get at least someone on the record raising some thoughts of caution and perspective.

The charts below should be fairly self-explanatory as to exactly where people are being told that it is a good time to be bullish:

$DJIA

SPX weeklx

$RUT

$WLSH

NASI

SOXX weekly

But hey, maybe we get our now weekly dose of new QE announced by the ECB tomorrow. Time for another gap up. Just don’t call it investing. Chasing may be more appropriate.

For more information about our trade philosophy or on how to become a member please visit the About and Membership pages.

Advertisements

Tagged as: , , , , , , , ,

4 Responses »

  1. I have a few charts that send the same message, so don’t feel like you’re the Lone Ranger…

Trackbacks

  1. Paradigm Shift | NorthmanTrader
  2. Weekend Charts: Gap City USA | NorthmanTrader
  3. Sunday's Top Links | Options trading IQ

Leave a Comment

The material on this website is provided for informational purposes only, as of the date hereof, and is subject to change without notice and does not constitute investment advice.
Home | About | Disclaimer | Contact
Copyright © 2013-2017 NorthmanTrader
The materials on this website may not be suitable for all investors and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.