When markets do not correct...take notice !!!!!

This market is defying many skeptics for many months now........

Many famous names are losing credibility with their thesis of this market .....

I am amazed that all of the critic of this market are well known "technicians"...

Robert Prechter famous for Elliott Wave theory MAY be discovering a SIXTH wave which is an F cycle...means FAILURE to see the chart direction......he panicked @ 1000 in S&P 500 & called for CRASH in markets back on Aug 5th...based on Friday's close of 1068.30......not only we did not go below March low as he was predicting BUT we went UP another 6.8%......so far.....

So we have many pundits who are in a "crash & burn" mode because of their bearish take for a long long time.....while markets keep going UP......

Now we have 5 minute traders on Fast Panic Money who are predicting that we are going down fast & have made many bearish bets.....I never thought that Joe,Adami had any credibility when it comes to market or stock prediction......they get stopped out every second......

Even a technician on Fast panic money saying that we are going down...based on WHAT...it is never articulated...another OPINION with no supporting thesis......

Art non Cashin is getting "blue in the face" with his WILD prediction of daily market crash.....

So...why Prechter,Rosenberg,Kass,Cashin,Adami,Joe & many other Joes are being proven WRONG?????

They are all trying to "tell the market what to do" INSTEAD of following the TAPE......TAPE has been very strong for months now.......

This TAPE is extremely "orderly" moving in a sustained manner....NO real EUPHORIA setting IN.....as MORE & MORE traders get SCARED of this TAPE......

Because so many traders are scared of this tape there is lot of pent UP buying waiting & waiting.....some actually start to nibble as market refuse to go Down........

RSI reading as of Friday's close are as follows :

S&P 500 71.52

Nasdaq 72.75

Dow 71.68

As I have said many times that we did go to 76+ before and we MAY touch 80+ before any correction MAY set in.....

BUT one needs to monitor 76+ in RSI to make some defensive bets...like writing covered call or locking profit......

As September is end of Q3.....I am expecting major BUYING by hedge funds/mutual funds to put cash to work.....so markets MAY go in overdrive before September is over......

SO..we have another 8 trading days of buying pressure..which MAY take S&P 500 to 1100 to 1150 area easily......

Now the question is ...how to position for this "buying frenzy" & then a correction.....

For that you have to understand market first & then your stocks...some stocks may correct more than pullback.....

Finally...you have to ask as a trader..do you fight for the last $ or book profit NOW......

Again... we live in interesting time in markets.....

This is the-most strong TAPE i have ever seen!!!!!

BLOG does NOT give buy or sell.

Saleem