I think the most fitting phrase to kick this rant off with is, "Victory for the bulls!" as Bob Pisani would say. I bet Bob & Dennis Kneale had a tea party today working on Dow 25,000 banners. Yeah, yeah, you know I like to gripe, and most of my readers know I am a day trader, which in my case means I am flat at the end of each trading day; this is my "edge," which works with my "system." That being said, the direction of the market really means nothing to me; what I care about is the intra-day range coupled with price action confirmed by volume. I like seeing healthy mechanical natural buying and selling, even though I do not have any trades currently long or short the market days like today bring me little joy. Why?
The bearish rising wedge we "semi sorta bears" have been watching for quite some time seems like only lines on paper. TA setups have been brutal since the "bottom"; most have been smashed apart by the bulls. I would be a much more confident trader if we sold off a bit, collected ourselves, and then moved higher or lower. The faster and harder we rise the harder and faster we fall? Maybe I am a bit overzealous... my theory is let the market trade, "bank holding companies" stop hitting each other's offers, and let's see this market play out naturally without all the "price discovery programs." I know I will never get my way, so I might as well adapt. We could remain overbought for 3 or 4 years much like after the tech bubble. If that is the case, we could be sitting at spy 155 by Aug-Sept 2010. This is a really fat chance, but so was + 60% from the "bottom".
The chart is a weekly SPY with the macro trends highlighted, looks like we have broken down through the wedge on the logarithmic chart yet we are still hugging the down trending resistance. Your guess is as good as mine.
