Waiting for Bigger Things

The Level of Madness

The market for the past few days has been marking time as everyone tries to assess the state of the madness.  The Macro feature “The Fracture” (decline in stocks, rally in gold and bonds) is building but still is at the back of the room.

The dominant force remains on the bullish side (government + wall street) and long term macros are moving towards bearishness, result, we end up with a trading market.

With our comment yesterday on selling rallies, one might ask how to determine where to sell a rally.  We watch a number of technical indicators, the simple RSI in many ways provides the most comfort.  The only trick in using it is too determine subjectively, whether you are in a little, medium, or big rally.  We use RSI’s on hourly data for little rallys, 4 hour data for medium rallys, and daily data for big rallys.

Yesterday and Todays Rally

We view the rally of yesterday and today as a little rally and the hourly RSI on the S&P showed a sell indicator at 2724 yesterday afternoon.

If there was interest we could probably provide our sell points as they occur.  So give us a comment or send us an email at


Post at 8:35 AM CST

A Little Fun History

I was reminded today by CNBC that this is the 9 year anniversary of the 2009 stock market bottom.  For a little fun history you might go back to look at our March 3 and March 6, 2009 posts.

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