All of the indicators are sloped bullish with the exception of the VIX, which is still bearish.
I'm still inclined to be bearish, but the market wants to go bullish. I'm hesitant to go long as nothing of significance has changed and in fact many things are getting worse. The talking heads get euphoric as the rates of decline in some sections of our economy; e.g., housing, manufacturing, lessens; but they are still declining. I hardly call that much improvement. When the market wants to rally, it will ignore bad news, which is the case now.
Also, the market is heavily overbought and will need new money from the sidelines to sustain the rally. We will have a major correction, but just not now. Plus, comrade Obama just gave away our financial hegemony to the G20, which in my opinion is stake in our economic heart. But, this is the way it is.
Although it is against what I believe about our economic situation, I will likely go long in the morning after the bad employment news, but before the stocks rally in the afternoon.
Good trading!
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