Skip to main content

See also:

Missing Accomplished

Before you criticize someone, you should walk a mile in their shoes. That way, when you criticize them, you're a mile away and you have their shoes.

With nearly two weeks traveling the western U.S. behind me, it seem the markets, although volatile, went nowhere - the SPX going from a 1881 close on May 2 to 1883 today. As the Sell in May crowd has been absent, so has the Buy in May crowd, with little Price movement and less Volume than normal - two of the three tenets of Technical Analysis found in charts. Although some indices try to breach new highs, the formation of a "Wedgie" in the DJIA and SPX does not bode well near term.

Speaking of which, key T/A gurus seem to be a bit negative on stocks, especially small caps, which have already been in a downtrend, preceding large caps: Ralph Acampora looks for a 25% correction, while Louise Yamada could see the Russell 2000 (IWM) drop only 10% to 1000, a support area. Part of this prescience is due to the seasonality of mid-term elections, where Sell in June is far more likely than in May - even Tom McClellan wrote about the June solstice (mid-June?) actually reaching the top of the market - then there is always October !!!! Hedge funds have a multi-year high in CASH and David Tepper, a righteous hedgehog, is also calling for a downturn.

For those interested in brushing up on their technicals, the S.F. Bay Area Option Group, which meets on expiry Saturdays each month (third), has a guest speaker - Charles Bassetti - who edits the Edwards-Magee T/A book, teaches at GGU, and writes a newsletter on markets - stay tuned here for more details.

As I mentioned in my Sentiment blog today:

http://mktsentiment.blogspot.com , the only real outlier in the Sentiment world was Insider Selling, both Board Members/Officers and 10% stock holders, have been selling since before the end of 2013 with both hands (although decreasing slightly the past two weeks). Financials were the big leader last week - buying and selling, but recently the tech folks have been unloading bigtime - Sandberg, Bezos and Zuckerman.

Whether this is an indicator of things to come, we shall know in the fullness of time!

The reader can SUBSCRIBE to this column (above) for regular weekly updates and click on BLUE title.