Tag: bulls

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Bulls, Rejoice!

happy bulls

Call options are dirt cheap.

The price of bullish call options on the S&P 500(^GSPC) has fallen to historical lows. That means that from a historical standpoint, it is remarkably inexpensive to make a bullish bet on stocks by buying on the options market.

“In terms of how much money it costs you to have exposure in the S&P 500, we’re looking at historic lows,

Dennis Davitt of Harvest Volatility Advisors agrees that call options have “never been more economical.” On the other hand, he said, “The puts [options to sell] are all-time expensive relative to the calls.”

Hmm…. So, let me get this straight. The stock market is sitting near all time highs. Plus, we have a clearly defined bull trend  and most people believe we are in a secular bull market. Yet, the options market is not buying it. This can only mean one of two things. This is either a buying opportunity of a lifetime, as most sell side advisers out there would surely point out,  -OR- we might be on a verge of a bear market.

Call me crazy, but I think the options market is loud and clear here.  

Z30

Bulls, Rejoice! Google

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Why Do You Hate Me?

bear market investwithalex

It’s hard to be a bear. No one likes bears.  Here are the top 10 signs that you might be a bear hater as well. 

  1. You define a bear who got it wrong simply as “An idiot”.
  2. You define a bear who got it right as “An idiot who got lucky.”
  3. Short squeezes give you a hard on.
  4. When you go to Russia you always order a Grilled Bear Steak.
  5. You can’t stop laughing when Mr. Market mauls all the bears.
  6. You secretly wish that Mr. Bernanke would round up all the bears and ship them to where they belong….. Siberia.
  7. You think that throwing bears out of airplanes should be an Olympic sport. 
  8. When up in the mountains you steal “Slow Down For Bears” signs and replace them with “No Speed Limit” signs. 
  9. You believe all bears are communists. 
  10. You believe bear mafia controls the toilet paper market.

This goes to all the bears out there. 

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Why Do You Hate Me? 

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The Secret Behind This Stock Market Run Up

 CNBC Writes: Smart Money: Smart money? Looks like it’s mom and pop

Happy bull investwithalex

For the most recent leg of the rally, it seems like the so-called smart money may not be so smart after all.

If that’s true, the smart money has been losing.

Employing even more conventional wisdom, that might suggest the market is forming a top and ready to fall, as retail investors are often thought of as the last ones to a rally.

That thinking, though, is getting challenged.

There’s no doubt the retail investor has warmed up to the market in 2013 after sitting out much of the gains since the March 2009 lows. The mom-and-pop crowd ripped just short of $300 billion out of mutual funds from the 2009 low point through the end of 2012 even as the market gained more than 110 percent during the span.

Read The Rest Of The Article

As I have mentioned in my previous posts, the overall BULLISH psychological backdrop is now at the extreme and flashing warning signs.

Various metrics aside, I see very few bears.  Even people who used to be bears and now bulls.  All popular media is overwhelmingly BULLISH. Even if the article mentions “a possible drop” such argument is immediately counter attacked by stating something to the tune of “If the market drops it would be a wonderful buying opportunity to add more stocks”.

The article above is no different. It clearly illustrates how bullish everyone is. It’s a well known fact that Retail investors are the last ones on/off and as such could not be considered as “smart money”. Over 200 years of market data teaches us that. Yet, somehow the article twists it to be so.  Simply put, neither the market nor investors can do wrong in this market.

Will this continue? I do remember seeing similar type of prevailing BULLISH psychology before, at 2000 and 2007 tops. We all know how that ended. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!   

The Secret Behind This Stock Market Run Up 

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What Everyone Is Ought To Know About This Bull Market

 CNBC Writes: Smart Money: Smart money? Looks like it’s mom and pop

Happy bull investwithalex

For the most recent leg of the rally, it seems like the so-called smart money may not be so smart after all.

If that’s true, the smart money has been losing.

Employing even more conventional wisdom, that might suggest the market is forming a top and ready to fall, as retail investors are often thought of as the last ones to a rally.

That thinking, though, is getting challenged.

There’s no doubt the retail investor has warmed up to the market in 2013 after sitting out much of the gains since the March 2009 lows. The mom-and-pop crowd ripped just short of $300 billion out of mutual funds from the 2009 low point through the end of 2012 even as the market gained more than 110 percent during the span.

Read The Rest Of The Article

As I have mentioned in my previous posts, the overall BULLISH psychological backdrop is now at the extreme and flashing warning signs.

Various metrics aside, I see very few bears.  Even people who used to be bears and now bulls.  All popular media is overwhelmingly BULLISH. Even if the article mentions “a possible drop” such argument is immediately counter attacked by stating something to the tune of “If the market drops it would be a wonderful buying opportunity to add more stocks”.

The article above is no different. It clearly illustrates how bullish everyone is. It’s a well known fact that Retail investors are the last ones on/off and as such could not be considered as “smart money”. Over 200 years of market data teaches us that. Yet, somehow the article twists it to be so.  Simply put, neither the market nor investors can do wrong in this market.

Will this continue? I do remember seeing similar type of prevailing BULLISH psychology before, at 2000 and 2007 tops. We all know how that ended. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!