About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Tuesday, May 14, 2013

SPX -- Monthly Chart

The month of May is not even half over, but I thought it would be interesting to have a
look at the SPX monthly chart anyway. SPX Monthly

Of course the market is overbought and we all know that. What strikes me though is that
the monthly MACD measure for the SPX is fast approaching the high levels last seen
during the grand bubble years of of 1998 - 1999. As well, longer term RSI is moving up to
a strong overbought as is the momentum measure.  They have started to chase stocks hard
and if you are a long side player with heavy (for you) money on the table, know that you
are now with fast company and big players who have a variety of issues with this market
but who do not want to lose client business because they are on the sidelines in a power
momentum run.

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