Monday, February 24, 2014

Relentless Bull Market

A new all time high, less than 3 weeks after a huge 110 point down move in S&P.  That is major league strength, the underlying buying power is tremendous.  Every little dip we've had since we bottomed has been bought aggressively.  The best times to buy the dips have been in the overnight market.  By the time the US regular hours start trading, we've bottomed for the day.  

I am not going to do anything here, we should get to 1880 by nonfarm payrolls in less than 2 weeks.  Way too early to try to pick a top, and I am not really interested in the long side, after such a huge move, although I think it goes higher eventually.


OR said...

owl, where do you see bonds at the end of the year, possibly without qe anymore ?


Anonymous said...

Hi MO, is it time to short natural gas? It seems capitulation has started. Thx.

Market Owl said...

I am short term bearish on Treasuries, but long term bullish. I would consider getting long Treasuries next month if the 10 year gets to 2.90%.

I was wrong on natural gas this week. I was expecting a last blow off top into futures expiration on Wednesday to short, but we topped out early morning. I missed the move, so I am not interested in it here.

Anonymous said...

Enjoy your notes - do you trade for your own account or are employed in the financial services industry?

Market Owl said...

I trade for my own account. It is what I prefer.