Bull Market Enters Its Eighth Year, Mocking Bears

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I’ve drum-rolled some Hidden Pivot rally targets recently in DIA and the E-Mini S&Ps that could conceivably produce important tops in these trading vehicles. We’ll short them if the opportunity should arise, but we should do so with no illusions about nailing the exact high of a bull market that just entered its eighth year.  Yes, I’ve as much as said we’re already in a bear market and have been since May, when the NYSE Composite advance/decline line made an ‘internal’ top in breadth that is unlikely to be surpassed even if stocks achieve new record highs in the weeks ahead.  ‘Technical’ tops aside, however, the 750-point rally required to take out the old Dow high would turn investors giddy enough to set up a real top. We should keep this in mind, lest we grow reckless in our enthusiasm for shorting a market that long ago decoupled from economic reality.


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