Like many of you, I’ve been eagerly awaiting the day when this powerful bear rally drops dead. Instead, AAPL has rallied with a vengeance, drawing a thousand doomed stocks into its vortex. Yes, the rally is a hoax. And yes, the Masters of the Universe have used it to distribute as much stock as possible into the hands of rubes, pensioners and widows.
Under the circumstances, I’ve been a reluctant bull all the way up, duty bound to follow the mechanical logic of my charts. However, the effort has worn me out, and that’s why I’ve selected the thumbnail chart today that I did (click on inset). It gives me the wherewithal to say that maybe, just maybe, the insidious promoters of the Big Bounce have breathed their last.
That Ominous Cough?
This is a logical inference, given that the E-Mini S&Ps have begun to roll down from a midpoint Hidden Pivot at 2732 where buyers were likely to cough ominously, if cough they have. The pattern itself is unfortunately not of the highest quality, and so I am prepared to see stocks come roaring back next week — led, of course, by AAPL, whose iPhone troubles have suspiciously melted away in recent weeks. If that is what happens, I hope you will pardon this digression. Think of it as a fleeting moment of sanity in a crazy world.