Wednesday, February 14, 2007

Just give up bears!

This market will never correct until the bears finally give up. We have had record short interest on the NYSE for months now. Hopefully today did something to help cull the heard a bit. My problem is that I would like to play the long side more, but I can't find any stocks that breakout and continue up. Everything seems to just whipsaw back and forth.

I would like to see a pullback for the overall health of the market. The more we climb this "wall of worry" the more severe the correction will be. I don't want to see a mini-bubble followed by a mini-bear market.

My chart of the day is the S&P 500. How long can this divergence between price and volume continue? It sure seems weird.

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