Another month, another round of crazy put buyers

October option activity continues to provide strong base to market.

Almost forgot about the final group of buyers

Put/call ratio is very high. Over-eager bears may become the final group of buyers next 2 weeks.

Market Topping Out?

Back in February, I said the market should come back to 10000 and then head downward. Well, 10000 is an approximate number. Maybe 9600 is close enough.

Benenke

Benanke said "recovery", and that convince a bunch of people to jump into the market.

That ought to be the last batch of "investors" there ...

10 Trade Days Til Expiration

The market has run too fast too far. I think there will be some sort of correction before option expiration day.

Look for the following to correct themselves:

Oil - XOM etc

Commodities sector

IBM, AAPL, etc.

Japan - EWJ

Gold & Silver

Bank Test

Amazing.

The Fed projected the 19 largest banks will suffer a collective potential loss of $599 billion, and this is being casted as positive, not so bad.

The banks are doing okay now because of $700 billion of tax payer charities. But this party won't last for ever.

What's the total market cap of those 19 companies? A lot less than $600 billion, I would think. If they were to lose $600B, then ALL of the current shareholders are toast.

RE: Citi on fire

 

The graph on the following link is very interesting:

 

 http://finance.yahoo.com/tech-ticker/article/226937/How-Bear-Markets-End

 

I think it basically says that we are not done yet.

 

 

http://trendmester.blogspot.com