There is No Reason the Market Should Continue Up

The Monday after Mother's Day the Dow was up 11 of the last 13 years. The Monday before May expiry the Dow was also up 18 of the last 20 years. Several weeks ago Floyd had a week of vendetta concerning our false perceptions of good and bad, and used the word "Fuck" regularly, teaching something about how we view things psychologically.

Today, I'll begin our alert with "Fuck, there is NO reason the market should continue to go up like this. It's dangerous". Long time subscriber MRK wrote me Friday to tell me it was time to get on my soapbox on inflated markets. As we all know, I am a believer in "not what should be, but what is," and not interpreting the market as "we want it to be."

Study this carefully for a bit of deflation on market tops:

http://www.ft.com/cms/s/0/158f174a-3bed-11de-acbc-00144feabdc0.html

(Cut and paste to your browser and read this article intently)

Our euphoric market hit 8627 in Friday's trading. Our Dow projections for last week showed highs of 8750 on the theoretical Dow as a "possible euphoric top." This is still possible, as is a run to 8867.

We see any drop that takes place from highs reached averaging 564 points from the highest high, which could put a bottom at 8250-8325.

The higher the market moves without consolidation the more suspect the longer term reality of the bias, if history has any say in what is occurring.

We did not trade calls Friday, seeing such a top, but the day trade on the May410P allowed many traders up to 1.25 per contract in "swings" around resistance lines during the day. The longer term hedge position on this option, however, was sold out at stop loss, our first in now 19 trades. The market is so over extended that no matter WHAT the bad news it continues to head up, perhaps a sign that shorts are continuing to cover their positions, but more likely that the "average Joe" investor ins piling in now, as typically the "average Joe" buys right at the top, after the market has been manipulated.

We don't care short term what the market will do, what is right or wrong, but only what "is" and what we "can make money off of".

But, FUCK, enough euphoria:) Get real, America, it's a mess out there. I promise: I'll stop swearing, but come on.....:)