By Sell Puts
To all the technicians out there, like myself, the market looks toppy. Hell, we all know this market is overbought on just about every indicator but this does not matter. Retail trading in my mind has really caused this market to overshoot, just like we overshot 20% down during the "crash". Whatever the case maybe, one fact remains, people are tired. When I say people I mean the kool-aide drinkers who believe anything cnbc and the likes tell them.
*FOLKS anything hitting CNBC, whether it maybe a popular market theory or sentiment, is old news!! Ill admit i have CNBC on when i am trading, but not for stock tips or insightful drivel. I keep it on in CASE some ridiculous news is first broke on CNBC, like the BS news on a takeover of Sprint SK Telecom Merger, i believe it was later summer 2008. This news came out around noon and it sent Sprints stock flying, only to drop back like a rock after Gasparino corrected himself, scammers. Rant over.
Anyway, the reason i bring this up is, do you own due diligence because if you do not you may get stuck holding the bag when the smart money turns this market around. CNBC = wanna be smart money but is always late to the party.
The reason this market is tired comes down to retail trading being shaken out of the market, possibly because people stuck in these 3x bear products havebeen horrificly beaten down in the near term are losing interest. People who are not seasoned traders, or those who have been forced to trade because they are looking to clear up a wash sale are getting worn out with this daily grind. Bids are beginning to lighten up and volume is getting lower, possibly signaling people simply cant sustain they must stop. When this happens the market will fall, the kool-aide drinkers will sell in a cascade.
Drumbeat: June 2, 2012
5 hours ago
