Marketview: Bulldozing Bearishness

Hardcore complacency is seeping into this market, and why shouldn’t it?  Support is holding up and we made three new highs this week.  I’m forcing myself to even write about complacency — how’s that for a tell.

The early warnings signs have arrived, telling us that we’re back to a two-way market, but the true deterioration that often accompanies a top has yet to emerge.  Technology continues to lead with value tech ($HPQ, $DELL) out front.  The energy sector surged and financials finally took a breather.  Transports ($FDX, $NSC, $UNP) were notable under performers as well as bellwether $FCX.  If forced to take a stand I will choose not to fight city hall but we are getting late in the game for this rally.

Remember that this is the market that birthed an Arab debt crisis (Dubai), a European debt crisis, an American AAA downgrade event, and a flash crash that collectively has transferred unfathomable wealth.  There is another surprise right around the corner.  Trust me.  Question is, does is happen after a gentle topping process or a runaway blowoff 30-40 handles higher from here?

Winners: $DVN, $APA, $EMC, $HPQ, $INTC, $DELL, $BMY


Losers: $FCX, $FDX, $NSC, $UNP, $GOOG, $AMZN, $BAC

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