“We spent some time the week before last discussing , including how a jump through S&P 1600 (to clear out the shorts) may have been a necessary precursor to the path of maximum frustration (Pop & Drop). As I gingerly sit here on May 6, 2013, however, the price action continues to impress with the S&P hovering around 1615.” - Todd Harrison, founder and CEO of Minyanville Media, Inc.
Full comment at… http://www.minyanville.com/special-features/random-thoughts/articles/A-Surgical-Approach-to-the Stock/5/6/2013/id/49531#ixzz2SWviKUST
POP AND DROP – MY THOUGHTS
Pop and drop? I had the same idea last week. With the continued move to the upside, I must admit, as did Mr. Harrison, this market apparently wants to go higher still. Topping is a process, not a place, i.e. it’s probably a fools game to try and call an exact top since finding a top usually involves several months of slowing momentum and choppy trading. I look back to the correction in 2010 and it took more than three months (19 Jan – 23 April) before the markets really broke to the downside and made a final bottom in July. The time to make a top was even longer in 2011. Just glancing at the S&P 500 chart, it is hard to see any signs of topping action and many have tried to explain why since this has been a very long bull run.
Monday, the S&P 500 was up 0.2% to 1,618 (rounded), a new high for the S&P 500.
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)