The title line of this post pretty much sums up my feelings regards even the slightest possibility of halting this current market rally short of 1050 or so on the SPX. Even on a sleepy summer Friday after sliding in excess of 150 pts on the DJIA on less than rosy Consumer Sentiment Numbers the bears exited the field early and the day ended barely nicked with a loss of only .8% The market now is an absolute Juggernaut certainly not to be stopped during the sleepy dog days of summer.
The one thing that concerns me is the Over lopsided short dollar trade. Everyone including my feckless receptionist who also noticed the overly lopsided looming bearish head and shoulders patttern of about 2 week ago is short the dollar. I even recall reading that one of the Victoria Secret Hotties demanding pay in Brazillian Real. When it is this obvious it usually is not recall crude oil at $140+ obviously going straight to the sky? A strengthening dollar would derail this market pronto. I have not come up with my catalyst yet for this but it is high on my research list.
We have gotten very lucky here at AEIG LLC, on our last couple of levereged directional calls, which I blogged earlier. I am thinking we coast higher into the end of summer, what lies ahead is opportunity, as this market could be a real snapper to the upside fueled by the underinvested and late to the party retail crowd, or a repeat of last fall. I do not feel it will be some where in between, only one of the extremes.
Good Trading
Ex
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