Bears don’t have it wrong — this spectacular bull run is not going to end well. Its days are numbered, if only because of the double whammy of Boeing and FedEx, two global giants whose very considerable problems will be weighing on institutional investors for the foreseeable future. At the margin, this will create enough psychological drag on them to make a Dow push much above 30,000 unlikely.
In the meantime, short-covering is the main force powering the broad averages into a steepening ascent. “This market reminds me of KrispyKream, when everyone knew it was going to zero but the shorts were being carried out in body bags,” wrote one long-time subscriber. “I think it’s fair to say that trying to pick tops is suicide. The blow-off top will probably give you an entry using your new system but in the meantime sitting on one’s hands is probably a good idea.” An even better idea is to surf the wave using the bullish targets published in Rick’s Picks as minimum upside objectives. Better to be guided by a skeptic who can read a chart without bias than by a permabull who would have had clients invested up to their eyeballs in the summer of 1929.