This is where the Nasdaq was on Friday's (12/20) close (see also, Part 1). Bullish sentiment was at record highs and the media frenzy could be summed up by my friendbuddypal Jim Cramer's declaration that:
"This is the year we went from the bear market with some bullish advances to an out and out full blown bull market. this was the year where we finally vanquished the demons that haunted this market since the nasdaq top at the beginning of the millennium.this was the year where things worked out where hard issueswere resolved positively and good news translated at the end to, yes, good news, right down to today's action where the stock market toasted a fantastic 4.1% gross domestic product game. with a darn good rally."
Cramer said we were in a "true bull market" and practically went out of his way to pull down each of my bullet points from Friday morning's post – where I warned our Members to cash out into what I thought was a very fake rally. That brings us up to Monday, where I felt it necessary to counterpoint Cramer and stop him from sending some of his sheeple off a cliff:
Dec 23: Merry Monday Markets – Apple Provides More Lift
That(The CHL deal with AAPL)'s going to send our indexes all the way to VERY overbought, if Friday's action on Dave Fry's NYSE McClellan Oscillator is any indication. Even if today adds less than Friday's 25 points, we're still going to be well above that 40 line but, once again, we don't really care – because we are mainly in CASH!!
And why are we in cash in such an exciting market? Here's a sobering snippet from the Consumer Metrics Institute's Analysis of the Economy: —-- (see the post for the rest, not worth repeating) —--
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