This page has been archived and commenting is disabled.

S&P 500 "Most Overbought" In 11 Months

Submitted by Tyler Durden on 10/30/2015 14:15 -0400

The last time S&P 500 rallied at such a pace (from an extreme of oversoldness) and reached such an extreme level of overboughtness, things went south rather quickly...

Charts: Bloomberg

- advertisements -

Fri, 10/30/2015 - 14:19 | 6731770 buzzsaw99

stock prices have reached a permanently high plateau

Fri, 10/30/2015 - 14:21 | 6731791 slaughterer

Yeah, well, this time it is differemt Zero Hedge. /sarc

Fri, 10/30/2015 - 14:28 | 6731831 Not Goldman Sachs

The last time the fud kept rates so low for so long and printed so much, was never. Very different. No market.

Fri, 10/30/2015 - 15:05 | 6731985 rogue_analyst

Nothing defies gravity, including QE and ZIRP.

Fri, 10/30/2015 - 15:21 | 6732061 herkomilchen

Nothing defies gravity forever. But it can defy gravity for quite a while subsidized by a printing press spinning away.

Fri, 10/30/2015 - 16:34 | 6732316 newnormaleconomics

The problem with that analogy is that, when gravity asserts its effect, the top of the pyramid containing the top 0.001-1% is one heavy-ass dense mass and will crush the rest of us when it collapses.

No place to run. No place to hide.

Fri, 10/30/2015 - 16:16 | 6732266 newnormaleconomics

The stock market has become a $25 trillion, not-for-profit, gov't-sponsored trust/slush fund for the top 0.001-1% to 10% and hedge and pension funds.

It's like a rentier-socialist utility for the top 0.001-1%.

Dire Straits: "Money for Nothing."

Debt-money for nuthin' and the peasants are free.

That ain't workin'.

That's the way you do it.

Them guys ain't dumb.

I want my MQE ("MOAR QE").

Fri, 10/30/2015 - 14:21 | 6731788 jubber

Dow up 1500 in a month the biggest gain in history...Peak Ponzi anyone?

Fri, 10/30/2015 - 14:22 | 6731794 stormsailor

i'm staying out of it. if you wanna short this my condolences in advance

Fri, 10/30/2015 - 14:30 | 6731843 r3ct1f13r

I think you are right. If you do not care about the price, I can not think of a better way to get people out of the market.

Fri, 10/30/2015 - 15:05 | 6731981 Fish Gone Bad

No market is unshortable, but I will be damned if there has been any place to enter that has not ended up in a "gotcha" moment the next day.

Fri, 10/30/2015 - 16:22 | 6732282 newnormaleconomics

Fish, see my post above. You're shorting a rentier-socialist, not-for-profit, gov't-sponsored trust/slush fund for the Power Elite top 0.001% and oligarchs.

They don't have to make profits or grow the economy anymore; they have all they need for several lifetimes: Elysium.

They are de facto "off planet" now, only they don't have to build an orbiting city-state; it's far more diffuse and hiding in plain sight.

You're a peasant. You can't win. You're not even supposed to be playing. Therefore, you lose. They won. Game over.

Get mad, get even, or get out. Get it?

Fri, 10/30/2015 - 14:51 | 6731937 Hal n back

I woudl think sooner or later the stock prices will have to be supported by economic growth at top and bottom lines with a reasonable ROI based on a reasonable DCF and rate.

Until then I hold my favorite stocks that are necessities of life like AAPL, FB and NFLX. (sarc-necessities are still food and healthcare)

Fri, 10/30/2015 - 15:10 | 6732017 Fish Gone Bad

The Bernanke stated that the Fed could buy the entire stock market, and they have been.

Fri, 10/30/2015 - 15:15 | 6732034 surf0766

IN marxist Amerika, you will support the market.

Fri, 10/30/2015 - 14:25 | 6731811 venturen

they are just warming up....there is NOTHING to stop pthem from Negative Interet Rates and print press "wealth". Name me one thing to stop them....like the other crooked CB aren't doing the same thing? What DOJ or Congress or "The Market" will do something... A postive feedback loop of destruction

Fri, 10/30/2015 - 14:30 | 6731845 Hitlery_4_Dictator

Should be bullish for pm's then right?

Fri, 10/30/2015 - 15:09 | 6732009 thesonandheir

Nah, if PM's reach their true value then the whole show is over. Bet your life on gold getting smashed down past 1100 next month.

Fri, 10/30/2015 - 14:34 | 6731860 xrxs

Time for the shorts to get some back.

Fri, 10/30/2015 - 14:41 | 6731894 Tyrone Shoelaces

VIX annd USD/JPY Futures manipulation, and outright prox buying, what could go wrong?

Fri, 10/30/2015 - 14:46 | 6731920 stormsailor

if i went against my conviction to never make anymore money in the market. i would go long 5 /es and have a merry, merry, christmas. seems after several decades of watching the markets once the october crash doesn't happen it rallies like on angeldust.

Fri, 10/30/2015 - 14:54 | 6731948 buzzsaw99

that angeldust is maggot bonus season

merry fuckin' xmas ho ho ho

https://www.youtube.com/watch?v=0-OkYLTdiTs

Fri, 10/30/2015 - 14:48 | 6731923 taopraxis

I added to my short stock and long gold positions on this morning's opening...not working, but I'm feeling stubborn and not yet ready to fold. I might add more gold next week. Stock shorts, no...not crazy.

Fri, 10/30/2015 - 14:51 | 6731936 stormsailor

tao, i hope you at least stay away from the momo's. those are the ones that will wreck you bad.

Fri, 10/30/2015 - 15:58 | 6732189 taopraxis

Thanks for your concern, but no risk, no reward. I'm not just here to watch...

Fri, 10/30/2015 - 14:51 | 6731939 Vlad the Inhaler

Check out the $NYMO right now. It's got a huge bearish divergence and has dropped below zero, exactly like it did before the downturn last November.

Fri, 10/30/2015 - 15:05 | 6731984 Two Theives and...

Mother of all short squeezes...that being said I like how it's rolling over pretty quickly atm

Fri, 10/30/2015 - 15:16 | 6732039 enloe creek

Duh what happens is the same as 2008 a default somewhere. China or oil driller debt, a city or corporate bonds. They can buy it all but no one else will. The door to exit bonds is tiny compared to the size of the market

Fri, 10/30/2015 - 15:50 | 6732161 franzpick

The most bearish coil-breakout-reversed formation, now showing in Au, Ag, GLD, SLV, HUI, XAU, tells me the stack-cash-now-buy-metals-cheaper-later-plan - may still be working. And PMs could be leading equities down:

http://www.investing.com/commodities/silver-advanced-chart

Fri, 10/30/2015 - 16:09 | 6732235 franzpick

Today's collapsing equity close now reveals an equally bearish shorter-term coil-breakout-reversal for DJIA, SPX and other indices. See the 60'. A blue Monday won't surprise me:

http://www.investing.com/indices/us-30-advanced-chart

Fri, 10/30/2015 - 16:53 | 6732371 wisebastard