By Jeff Clark on the S&A Short Report Direct Line:
[We got] a quiet opening today, but everything still lines up bearish.
My comments have been rather one sided lately, but what we're seeing in the market is quite unique.
Stocks have put together an unheard of string of consecutive gains (25 of 28 Mondays closed higher, financial stocks are up 26 of the past 28 days, the S&P is up 13 of 15 days, yada yada yada). And, there's absolutely no volume behind the gains.
Meanwhile, negative divergence persists on all the short-term charts.
It's strange to have this action and not get a sharp pullback. Even stranger to have this action continue for so long.
We saw it last December too. That led to a very fast 8% drop in the S&P in just a few days.
I expect we'll see something similar when this market finally breaks.
Crux Note: Jeff just sent readers a recommendation to take advantage of the big move he sees coming. He thinks they could make up to 300% on this trade in the next month. The recommendation is trading below his buy-up-to price, so you still have time to get in. To access the S&A Short Report, click
here.
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