Bullitt

(Fast forward to 1:40) "Run away, turn away, run away".... we all know the true meaning of that song, but we can totally apply it to the current market conditions in an 80's kind of way. As the crowd seems to have been fooled into playing the contarian, buying when the market is down method, but they fail to recognize that it's only contrarian when everybody else is selling. For the most part, contrarian investing was probably invented by the enormous mutual fund industry ...

Ahh, yes, the songs of the summer; not only is love like a baseball game, but so goes investing.

Tapped out to the G Fund yesterday and while we probably will get a little rally next week, I'm not going to worry about it. The failure of the market to rally in the midst of some serious up volume and breadth thrust goes to show how broken it is. Right now there is some major resistance ahead to include those who bought at the start of 2010 and the Feb lows. ...

Just an update on my stance here. Still 50% long from last Thursday and no reason to lighten up. The McClellan and a few other AD oscillators have been showing some strong bullish divergences for a week now. Internal leads external. With the summer volume, big orders are are able to push the market in the desired direction. Basically every quant looks to piggy back the big buys by the mutual and pension funds and when volume is shoddy in the summer months it's more noticeable when the ...

Oh yes, the best things do happen while you're dancing. But is anybody out there besides the algorithmic trader and borrowers of zero interest loans still dancing? Hey, what's to worry, the 50 DMA is still above the 200 DMA and cumulative NYSE AD Line is still moving up. No divergences here so keep the music pumping and keep the Schlitz flowing out of the keg.

We've talked about manias and investor psychology many times before in this thread including how ...

5th distribution day today in the SPX and NYSE is looking about ready to break it's little uptrend line at the double top level. The smart money traders are not getting any more bullish and have been lightening up while the dumb money p/c ratio still hangs below .55, a sign of complacency. Monday, oh it must be a Monday when the market just rises on light volume. It's crazy. It's at the point where all you need to do is buy the most riskiest, speculative small cap stock (or penny stock ...