As of today the Dow has been up an amazing 12 out of 13 sessions. There's a fairly large short position built into the NYSE. Nothing makes a short seller (one who owns shorts) more nervous than a stock market that acts as though it will never go down. Even worse when the market finally does correct, the down-move is so small that it hardly shows on the charts, as you can see below.
But eventually, the shorts can't take it any longer, and we get a final short-covering blow-off. Watch for this in the days ahead. There's no buyer as frantic as the owner of a collection of shorts when he decides he's wrong and he has to cover!
I'm still fascinated with the dollar, below. The dollar has fallen out of the little flag pattern, but is still holding support at 79.50.
Below is GLD, my proxy for gold. To be honest, it ... Log in or subscribe to continue reading.
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