DaBoyz looked to be in good position to short-squeeze the broad averages higher for a second straight day. They must be pleased to know that they can nearly always count on short-covering bears to push stocks higher with far more power than mere bullish buying ever could. Check out the latest update to my VXX tout, since it contains actionable guidance designed to take advantage of this. The trade could return great odds if a moderate rally today sputters out around mid-session.
Exploiting the Exploiters
- April 25, 2017, 6:50 pm
SPY short interest at lowest level in 10 years.there are not enough bears left alive to allow a short covering rally and push stock markets to new highs. Its all bulls now Rick and nobody else.
http://www.zerohedge.com/news/2017-04-25/throwing-towel-us-stock-market-shorts-hit-10-year-low
Wilshire 5000 will double top today
EuroStoxx50 is double topping too
DAX at major resistance
MSCI World Index is making potential double top
Nikkei is again approaching 20,000 resistance level
It all adds up to a recipe for a correction to unfold on the next FOMC come May 3rd by my reckoning. Unless the bulls can punch through resistance levels on stock markets across the globe then we probably get a correction instead.
Shanghai is already down 5% in the past 10 days. A portent of things to come? I suspect it just might be. Would not be the first time Asia led the declines.
Just a heads up that we might finally be ‘there”.