Sunday, March 31, 2013

I've heard several people talk about the stocks above their 200 DMA in the SPY being, aaaaaaaaahhhhhhh, frothy, over the course of the last couple of weeks, so, I decided to check it out for myself.
HHHHHHMMMMMM, well, I'll be damned, we actually aren't over bought much at all, in fact, based on the last couple of highs in the red boxes we have quite a ways to go before we get, THERE! Also, as it shows in the green circle, it's actually doing the "right" stuff, trying to go higher with the "markets", so, my opinion is, it's COOL!
HOWEVER, if, and that's a HUGE "IF", you ever see the configuration way over on the left side, where we made the previous all time highs in October of 2007, and the number of stocks above their 200 DMA were setting up a HUGE NEGATIVE DIVERGENCE, then.......................... RUN FOR THE FRICKING HILLS!!!!!!!!!!!!!!!!!!!!!!!

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