One Trillion Short could push the Dow past 18,000

One Trillion Short could push the Dow past 18,000

The $1 trillion short

Amid its biggest about-face in nine decades, a funny thing has happened in the U.S. stock market, where rather than loosen their grip bears have grown ever-more impassioned. They’ve sent short interest to an eight-year high and above $1 trillion, by one analyst’s math. Position reports from the Commodity Futures Trading Commission show mutual fund managers are more skeptical now than any time since at least 2010. Full Story

Short interest ratio highest in over 9 years

Our view of an expert is an EX Spurt, in other words, a spurt that never was or never will be. These penguins are shorting the market to the tune of $1 trillion dollars. Sure this could trigger a correction, but they started to short so long ago, that at the height of the correction, they might if they are lucky hit breakeven. Do you think they will have the sense to bail out at that point? No way in hell will they opt for that path; they will be chagrined and start screaming from the top of their lungs that the end is nigh, and that is when the markets will bottom again and rally erasing any temporary gains they might have experienced forever. This is history for you. Understand that the masses cannot win, they never will win, no matter how hard they try, they are doomed to fail and doomed to be used as cannon fodder by the nefarious top shadowy players.  To break free is not easy as you have to deprogram yourself, you have to want to do this not dream about it. The first step would be to question everything you were taught to accept and believe in.  Second step; stop getting your information from mainstream media; better yet cut the cord out and spend as little time on the net as possible unless it’s directly work related for one month. If you survive this process, and most will fail, then you can start to breathe a little easier. You have achieved 40% of your objective.

The above development is a smashing development, so break open a bottle of wine or cool aid or brew a pot of Chai if you don’t drink and relax for you know that any strong pullback is going to be a buying opportunity, for the masses think otherwise.

Credit Suisse Group AG’s Fear Barometer just hit a new high.

The index, which measures the opportunity cost of buying protection against a decline in stocks, usually sees increases like this due to higher demand for “puts,” or options which give investors the right to sell equities, and lower demand for “calls,” which give the right to buy. Specifically, the barometer calculates how far “out of the money” an investor would have to go to purchase a three-month put on the S&P 500 that is the same price as a 10-percent out of the money three-month call option. This time, however, the firm says the entire move was driven by lower demand for calls.This means that people are putting a much higher probability on stocks falling rather than rising. “The derivatives market is assigning less than 1 percent probability the market will rise by 10 percent in the next three months vs. 17 percent probability it will fall by 10 percent,” wrote Credit Suisse’s Mandy Xu. Full Story

 Here is another lesson in Mass psychology; it does not matter if anything in the above story is true or not; masses tend to focus on headlines and then the story they read is shaped around that headline; this is programming for you. Hence, from the onset, they will read the story with a twisted bias. In this instance, there are some valid points in the story. Overall, though we see this as another bullish development, indicating that while the ride is destined to be volatile, this bull has more steam in it

Game Plan 

The markets are currently overbought, after mounting extremely strong rallies from their Jan lows, so a nice pullback would not surprise us. All strong pullbacks should be viewed as buying opportunities and not as signal to run for the hills.

[color-box color=”orange”]Here is one expert you want to be careful of;  on numerous occasions, he has stated the market is going to crash. In fact, that is the only song he keeps playing and surprisingly the markets continue to trend higher. [/color-box]

Other Articles of Interest

Fear mongers are parasites that profit from your fear (2 May)

Gold Bugs think & stop listening to Fear mongers  (1 May)

Fear mongers are parasites that profit from your fear   (27 April)

Plain evidence that financial experts know even less than Jackasses (26 April)

Negative rates fantastic for speculators but terrible for global economy (16 April)