Squeezy never left the waters folks; he was spawning.
In the chart below we have outlined the short seller beware waters of TREND line support for a stock market that continues to sell off to higher lows. We have called the Consumer Discretionary segment of the S&P the Suckerpool Chart, and we have refrained from shorting anything in the Financials out of sheer respect for the momentum embedded in Squeezy's potential math. Now the only question that remains is can the SP500 make a higher YTD high?
That closing high price of 934 was established on January 6th. At that time, we didn't have 2 core components of our bullish Consumer MEGA Squeeze call on the tape for the Depressionistas to swallow: 1. housing deteriorating at a lesser rate and 2. unemployment accelerating at a slower pace.
Today, with plenty of shark jumping in the rear view mirror, the only thing I can tell you is that it won't pay to be a hero here and swim where Squeezy and his newborn remains. This remains a global stock market squeeze of generational proportions.
Will I be making sales on the way up? Sure. After all, I bought them lower with a proactive plan to do so.
Keith R. McCullough
Chief Executive Officer