Is It Time To Head To The Bunker Yet?


With $BPSPX rising to extreme bullish levels lately at 86.8 and RSI nearly at 90, while VIX the volatility index has drop to nearly a 52 week low, we wonder if complacency has lulled investors into a coma.
No major structural changes to the financial systems have appeared to date.
Banks are lending less and less to small businesses.
Insiders are now selling stock vs. buying at a 5 to 1 margin.

Sounds to me like we are very close to the precipice.

What we will watch for is when the 50 day MA crosses the 200 day MA for confirmation of the big move down.


  1. I've also come to the conclusion caution is appropriate. September 2008 was a Great Depression magnitude event, i.e., a threatened collapse of the financial markets. It's been reported there are over 7 million mortgages in trouble, many Alt-A and ARMs that will be in trouble in a second wave of defaults (reported on "60 Minutes"), commercial real estate on the edge, unemployment very high, fiscal and trade deficits out of control: what does the stock market like?! This rally could very well be a dead cat bounce, a sucker rally, which is what happened after the 1929 crash. I've always found that stocks return to macro economic fundamentals, when reality enters the picture, and the realities now are not pretty, nor have the problems been addressed in any effectual manner. Also, in 1929+, the big boys on Wall Street busted out the market, dumped, sold it short, got while the "getting was good." There could be an effect coming that big money decides it's time to head for the hills, that low volume and upside resistance is signaling you can't get blood out of a turnip, and, when they start to sell, watch out!

  2. My sentiments exactly Anonymous.
    This is why I am so bullish on gold and bearish on most stocks.


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