Author: Varun Kanotra
Posted: November 23rd, 2009 at 7:36 pm EST
Don’t get too excited. I think this is a joke. The DOW is the only index that made new highs today. The NASDAQ, S&P and even the DOW transports were lower.
This divergence along with lack of volume, the CBOE put to call ratio hitting a low today are all divergences that show that the market is getting frothy and very complacent.
Then why is the market rallying, you ask? Because it always does what it wants to do, and never what you want it to do. It’s time to tighten those stops and look for short positions.
Be extremely careful for what’s coming ahead.