Ah, would that it were true! Yes, we did come within two ticks of nailing Friday's spike high with a forecast made several weeks ago. And some Rick's Picks subscribers evidently did get short at the exact top, reaping a windfall gain from the 21-point selloff that followed. But it doesn't look like the coming week will afford bears much time to gloat. Notice in the chart below how the Mini-S&P futures were in recovery mode by day's end, finishing five points higher on the day. That's not the kind of performance that would have made headlines, but it should suffice to warn bears against becoming too complacent. So by all means, pat yourself on the back if you shorted the top -- but just make sure you've purged complacency from your outlook when the new week begins. In all probability, this was not the Mother of All Tops that we witnessed on Friday, merely one more psychotic short-squeeze that did almost nothing to ameliorate the underlying bearishness that has kept stocks buoyant. Of course, nothing has changed fundamentally, even if the Sage of Omaha now apparently believes that the worst is behind us. For our part, we still see the economy headed into something far worse than the 1973-74 recession, and the Dow Industrials eventually slipping below 1000. But what does that have to do with the stock market? In the long run, everything. But over the short-term? Apparently nothing. And that means that, much as we'd love to simply 'short the market' and forget about it, we must instead content ourselves with trading the intermediate swings from both the long and short side. No Illusions But we have no illusions about being short at the final top, since all of the juiciest shorting opportunities we've seen in our lifetime
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