Cobra's Market View

Smart money covered a little so the short is not extreme yet therefore should still be some up rooms.


How I use the chart:

I don't care what's the logic behind the chart. I found it works in the following two cases:

1.) When market up huge, if I see smart money huge short, best if new record short, then I know a short-term pullback is due soon.
2.) When market down, if I see smart money suddenly rises sharply from very negative value, then I know the pullback was over.

So I only use this chart for the above 2 cases. Besides those 2 cases, it means nothing to me. i.e. the absolute value of this chart means nothing to me, I only care if it rises sharply or drops sharply.

Summary of the week's stock picks:
viewtopic.php?f=10&t=2297&p=234850#p234850

don't forget our weekly sentiment poll here: viewtopic.php?f=9&t=2304

The next week's stock picks are here:
viewtopic.php?f=10&t=2306

Ned Davis Research uses LOG SCALE on the Value Line Geometric Index, and is watching for a long term breakout/breakdown. Watch the 520 level

WHO WILL BUY THIS WEEK?
Wednesday’s NAAIM shows managers “all in” at 101.33. They can jack that up a bit with more margin, but it’s toppy.

This is “Rebalancing Week” which will end on Friday the 30th
“In a report by Swiss Bank, pension funds that rebalance monthly and quarterly would need to sell $38 billion of U.S. equities in coming days to rebalance to prior asset allocation levels… Credit Suisse analysts believes the selling in U.S. equities could increase to nearly $58 billion (and bond buying to over $35 billion) should equity-bond relative performance continue to widen before year-end...”
[source Swiss Bank via zh, 12/22/16]

Can the BTFDers absorb all that selling?
Seasonality favors longs.
Are there any buybacks scheduled?