November 22, 2016 – Mid-Afternoon
Short and sweet…
The Stock Market is making new highs, and as I have pointed out over and over for many years, ANY TIME A MARKET IS MAKING NEW HIGHS AND THERE IS ANY NOTICEABLE SENTIMENT THAT SUGGESTS, “DON’T BUY IT”….THAT IS EXACTLY WHAT YOU ARE SUPPOSED TO DO.
This IS a mob psychology game and the street is littered with “analysts” and internet yakheads who have been calling the top in the stock market for YEARS…and they STILL are doing so…
For sure, the new highs are attracting SOME new believers, but from what I can see, the overwhelming majority of Wall Street geniuses are still saying, “No, No, No. Don’t buy it HERE”, and in my experience, you don’t EVER get a top when 80% of those guys are basically negative…or even cautious…When this thing IS ready to stop…and there is NO telling how far from here that might be…the EUPHORIA will be obvious…But right now, it ain’t even close.
You want proof? Here are FIVE DIFFERENT INVESTMENT COLUMNS FROM TODAY trying to “Warn” investors off the market….
So if you want to argue that those are just 5 articles, by 5 different people, and that they prove nothing…I will agree…that they don’t PROVE anything…But I will also say that I don’t ever invent reasons to support my opinion…All I am interested in is trying to be right…And I will bet against those FIVE “expert” SHEEP (and the 50 others like them I could easily find) and their never ceasing wrong-way “logic”, as they say in basketball, ALL DAY…WHEN EVERY ONE OF THOSE NITWITS IS SAYING “SELL’, YOU ARE SUPPOSED TO BE BUYING.
THE MARKETS ARE MAKING NEW HIGHS. AND IT IS OBVIOUSLY BEING NOTED (IT HAS TO BE) BY THE MEDIA MASSES, BUT I STILL SEE ZERO EXCITEMENT ABOUT IT…AND AS I KEEP SAYING, PLENTY OF DOUBT…So it IS going higher guys…And a month or two (or weeks) from now, when the Dow is maybe 1500-2000 points higher, you’d better believe that interest rates are also going to be a lot higher…and the LAST thing you’ll then be hearing from the Fed is ANYTHING about “rates staying low”, or even “just going up gradually”. To the contrary, I firmly believe they will be shifting in to “hurry up” mode…
Which brings me back to Eurodollars…They ARE on their lows. They ARE moving AHEAD of the Fed. And I think they ARE about to just crack WIDE OPEN…If you are still not on this, but see the sense in what I have been loudly presenting in my newsletters, I urge you to pick up the phone and talk to me…And if you are already on it, I’d say look at getting more…The truth is, and I mean this, I am amazed at how cheap put options still are…which suggests to me that the majority of investors DON’T agree with me…and that IS a good thing.
And this is why I am writing while the markets are still open…
Eurodollars have barely moved today but this option, which I priced at 6.0 last night, is now offered at 4.5...which just further reinforces my idea that very few people see this the way I do...And that is exactly the way I want it...
This option has until next June…to hit just 98.50 to produce a quadruple? And yes, if it doesn’t go lower, this option will be worthless…But again…I WILL TAKE THIS BET…ALL DAY.
And btw, this market trades almost 24 hours a day…
All option prices in this newsletter include all fees and commissions.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars