As another light show of new highs across the board intraday is taking place, I thought it would be a good time to once again review where we are.
We are still holding and now rebounding off these key levels I have talked about, so for now everything is still good. Tomorrow I have decided not to go to the Improv because I will be able to get all the comedy I need from the doctored NFP report. I wonder if they will have the gall to tell us jobs were actually added? The lies are already at a level that I have never seen in my time on this earth, so why not just take it that far?
I came across Blowoutcongress.com recently and once I got over the funny name, I realized it is a great idea. They tell us that one party won one single election out of 7, and it was the one with by far the smallest number of total votes, and that is a ringing endorsement for what the current party running things is doing! I don't for a minute think these people are stupid like some allege, these are just very dishonest.
This is not a political blog, but politics have alot to do with this rally so they need to be considered. Of all the lies I have heard this one by far takes the cake. An election that I don't think had 100,000 total votes, we are to believe that is more representative of the national view than the ones that had millions!
People are not going to sit idly by and stand for what is happening. I have no doubt if the other party was in charge and doing things as outrageous as this, this condition would be the same. Extreme actions in either direction do not work for a country that is fairly evenly split on things.
What does all this have to do with the markets? It is imperative that this uptrend stay intact by any means necessary. Make the numbers be whatever they have to so as to not jeopardize this collective mindset. It is the only footing these traitors can stand on when arguing that what they are doing is helping things improve. If the market were to go south, then all of the sudden a 19% earnings drop by Cisco as just reported, would be viewed as bad news and not good. The collective psychology of things is so important when trading and looking for market moves. As a result, I believe that whatever the real unemployment numbers are, we will see nowhere near the truth. Anyone shocked by this needs only to listen to any standard politician from either party, just lie repeatedly about virtually everything.
So if you have made it this far without tuning out, what to do. If we are going to have any meaningful deeper correction here, the recent low has to be taken out. For those chomping at the bit to short this, I am not one of them at this point, you could choose a spot between here and the high and go in at the market with a stop at the high. The more prudent approach would be to short a break below from 11/2. The indicators I primarily use are turning up enough with this bounce here that my sell signals are going away. I have not gotten any buys, so I am sitting flat for the moment.
Remember not to buy or sell stocks based on your opinion of the economy, these two can diverge for long periods of time like we are currently witnessing. I know some of you think this whole move is bogus, and I do also on some levels. However, the reality is that we have an incredibly strong uptrend so do not fight it until it breaks. There is no telling how far this could ultimately go. Let the trend be your guide so until the 11/2 lows go I would not get too excited about going short. At the same time I would also not buy new highs due to those levels being the 50% retracement to the all time highs.