Happy Weekend, traders!

We’ll make this short and sweet this weekend (or we’ll try to).

I called bullshit on the April drop, and that’s been not too horrible as the S&P 500 has now almost returned back to its prior ATH. I also warned about exactly what we’ve just seen as far back as March 11th (here). In that post, I suggested a bullish option that involved a grind higher (which we got up through April Fools), then a drop to test the 50-day, then launch. And so far, that’s exactly what we’ve done.

Don’t get me wrong: I didn’t want to do that. I think we’re in a bubble, and I’ve thought that a hiking cycle of the magnitude we’ve had would be enough to kill it. But, I’ve also been open to the bubble going on still, and I now think the likelihood of that happening continues to grow so long as we don’t see big bears show up.

Read more “Weekend Review of the Markets: The Coming Short Squeeze”