Congratulations Mr Market, you've made a new high by a couple of points. Now everyone wants to see what you're going to do for an encore...
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The average man on the street is going to hear the news stories say, "The stock market hit a new high today", and think, "gosh, I'd better get in!" And that, ladies and gents, is how the big money distributes shares to the unsuspecting masses.
We're now overbought on a short term basis, with the RSI going over 70 today, before a slight pullback late in the day. There seems to be higher odds of a pullback (or consolidation) before any further meaningful advance, IMHO.
I would be careful about chasing the market here. If I was long, today might have been a good day to take some chips off the table.
F Fund (AGG) is looking very toppy here, and I think a pullback is just beginning. Of course, I've been saying "overbought" for at least a week now. Ridiculous.
Chart of Oil (USO):
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USO has really been tanking, making a series of lower highs and lower lows. Note that as it hit it's high of 12.45 early last month, the RSI also hit 70, which was a warning bell. It tried a couple of times to rally, but to no avail. Perhaps we'll get a bounce at the 50% retracement level (around 10.00), or when the RSI hits the 30 area. Keep your eyes peeled.
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