Take a look at this chart of the Nasdaq, during the month of July last year. It went up for 13 straight days in a row and it was a harbinger of what was coming: many months of bullish action. I’m not implying that this is going to occur, but it’s food for thought when you consider that everyone is saying we are overbought and a correction has to happen. I’m here to tell you it most certainly does not. I was wrong to think the markets were in need of a correction 5 days ago, and I’d be wrong to assume it has to happen now with all my signals pointing to further gains.

In addition to that chart I’m not really seeing overextended action in a number of my other sentiment/market internal indicators yet. Below are two bullish plays that stood out to me tonight in my scans.

momentum charts

momentum charts

If your interested in a totally different analysis of the markets, watch this. Consider if Christian is putting his opinion of where the market should go and if it’s a tad different from what the market is actually doing. I’m not saying he won’t eventually be right, I just disagree with the advice to short into strength.

2 Responses to “We Are Not Overbought”

  1. Rosabarba Says:

    The Nasdaq link appears to be bad.

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