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!
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