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Friday, June 9, 2023

What The New "Bull Market" Means For Your 401k

It was a pretty dreadful week as far as trading goes, unless you knew where the next sector rotation was going to be. The latest one was in small caps, and REITs, and I think REITs may still have further to run, and I'll be tweeting out any movement I see in that sector, at today's open. 

As I tweeted out on Wed., I've been piling (401k money) into small caps for the past month and a half, so I'm happy to finally see some action there. I'm just uncertain as to how much longer this can last? 

$RUT Russell 2000 (small caps) Trades into a right shoulder, on a mature head and shoulders pattern. 

Does this look like a "bull market" to you? More in a minute.   


I'm thinking about where I may find a safe place to hide, when the market pulls back?

I'm thinking treasuries:    

Red Flags  

The Lame Stream media is announcing a new "bull market" this morning, which is bearish.

A Bull/Bear market as defined by the Lame Stream media is nothing more than a smoke and mirrors term for, 20% correction.    

More Red Flags 

I noticed this red flag while I was checking US futures early this morning: 

It's the CNN market sentiment indicator, and it really should be pinned in the red, rather than the green; in order to warn unsuspecting investors. 

I decided to do a little digging into how fake news CNN calculates their Fear and Greed index, and found it interesting. 

One of things they factor into the fear/greed index, is the cost of Treasuries, compared to Stocks. 

They also look at Put/ Call Options, and based on where the $VIX is trading I'd venture to guess, the powers that be have been building a massive short position, ahead of the summer break. 

Perhaps sell orders are being stacked? 

I'm not sure how much longer the broader market can continue to test the top of this range, but the Fed is due to report next week, and then we get into the summer doldrums, and I would expect to see some profit taking ahead of any future uncertainty. 

Black Monday surprise perhaps? 

Take care, and I suggest you take a defensive position ASAP 


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