Sunday, May 19, 2013

Nemo's Findings for the May 19th...

(Course on chart pattern recognition is available now:  

Folks, about all I can say is WTF!!!  I lived through the Reagan boom, the crazy internet boom, which every one knew was crazy, and now this relentless climb.  

Bubble, no bubble..who knows, predictions are for weathermen.  

As I said last week, if the SPY were to reflect the P/E ratio of the 2007 highs, we'll keep going until 197ish. Hazarding a guess (so I can point back to this and pound on my chest that I was right, all the time ignoring all the times I was wrong  ;-)), I think it's possible to go to 173.60ish-178.30ish on the spy before it takes a breather

What's different about this run and the Internet boom, is there are real companies with real revenues.  Back then, it was all about "eyeballs."  Add to that, bonds have extremely low yields, there isn't much for alternatives unless you want to buy some form of real estate or hard asset (other than precious metals that is...), so where does the money go....stocks?  Looking at volume, it's average at best,so there is no need volume to come in to create a top.  We ain't there yet.

 Anyway, the week that was:

  You can see where I've, and have been, drawing channel lines in, because, as you can see, the indexes have been following these channels.  Notice the VXX is still in the ditch, and digging deeper.  No fear anywhere.

The week that is: