Monday, August 25, 2014

Get your ES 2000 party hats on, time to celebrate! Or is it?

Congratulations world, we have just seen the S&P500 index reach the magical 2000 number.

Not only was this height reached on low volume, but it is the fact that panic-buying ensued after 2 flashing red headlines - Services PMI miss and Housing miss.

So now the S&P500 is over 2,000. Dow is over 17,000. The Nasdaq 100 is over 4,000. Only the Russell 2000 is being the lagging lame duck.

Rather than to say how crazy this is (it is), and saying it can't be possible (it clearly is possible, here we are), how's about some of Mr John Hampton to share his thoughts about where the market is.

My thoughts? Too much broad-based hopium of stimulus and the final chain of the greater fools changing hands with each other.

I still maintain that the US market is ridiculously overvalued. I remain steadfast in my positioning. It will take the markets at least 2 more weeks to convince me if I should cover my shorts. Will US weakness affect other markets? Investors with many more years should surely hope so.

#timestamp ES 1999.7

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