All Smoke And Mirrors, The market Really Didn’t Go Up.

The markets have closed for the day and they keep melting up on abysmal anemic volume day after day. Seriously, how much longer can this circus continue to go on as we clearly see the correction that is coming. Pure and plain manipulation by DaBoyz and smoke and mirrors performed by Dr. Banana and his Monkeys, more on that tomorrow.

Someday, the ‘what’ that is behind the lack of participation in these markets will be known, but until then I view with extreme prejudice the market movements of late. I have said before and I will say again, holding anything longer than the current session is too long. All it will take is one Black Swan moment and a lot of investors are going to lose their shirts. Far too risky to bet on this market just before the ‘Sell in May’ scenario begins.

WTI oil closed at 107, Brent closed at 124, gold closed at 1691 and the USD fell from it high this morning of 79.90 to 79.09. The USD fall is bullish on the markets, but will it stay there in face of the Euro’s woes?

The 500 closed above it 3-19 highs.

The DOW closed just below its highs and makes me believe we will see a pull back tomorrow morning. (But I am not betting either way.)

$RUT looking good, but will it stay there? I think not for long as the ‘gap’ is not a good thing.

The Indexes.

Just read at Zerohedge. There is obviously a difference of opinion with Leavitt that believes most managers are out and missed the Bull run. As I mentioned above we will know someday just what is behind the low volume. The part about Insider selling transactions I can believe. 

Forget Money On The Sidelines, Institutional Investors Are All-In

“We have discussed the money-on-the-sidelines fallacy a few times recently in the context of the circular money-flows (clear misunderstanding of the idea of a buyer and a seller) as well as mutual fund cash levels, retail sentiment, demographic shifts, and insider transactions.

There is mounting evidence, as Morgan Stanley’s Michael Wilson notes, that ‘make no mistake…institutional investors are all-in‘ as the rolling beta of mutual funds relative to the S&P 500 tops 1.10x at multi-year highs, institutional investors are most exposed to high beta sectors since MS data began, and long/shorts funds are near their most levered long since MS records began.

Combine this with the massive surge in Insider Selling transactions in the last few weeks (apropos Charles Biderman’s comments on the rally’s support by Insider buying til now) and perhaps bearish retail sentiment will lead this market down as we hope that finally ‘money-on-the-sidelines’ fades from the parlance of all but the most aged and incompetent of market prognosticators.”

All for tonight, see everyone tomorrow.
Written by Gary