RSI in Dow is 88.10.......

Market has been on major bull run since last October, a 12 months of celebration of good things happening in US economy......

Last election results, has triggered the longest bull run, which i can remember without any real pullback, IF there was any pullback, it was short lived and TAPE recouped everything & more in a hurry.

Election gave us total sweep by Republican party in House, Senate and Presidency.....

A progressive tax reform is in the works.....

Deregulation is the key word in many policy matters, be it financial, climate, automobile,and other key areas of regulation........

All of the above and a hard line in trade matters is taken as positive for US economy and US stock market.

Someone recently said " market set the value of stocks, sometimes very high and sometimes very low"

I do not have to tell anyone, where we are sitting in " valuation model "

It IS very high as shown by Dow 88.10 RSI....

Can we continue in this frothy condition......i do not think so.....

This earning season may be given a big yawn, thus a pullback may be imminent......

VIX is another factor, it has been too low near new 52 week low for a long time.....never seen this low for this long ever, i mean in decades.......

Dow has been UP 6 weeks in a row......do not recall this happening either......

I guess, we are all suppose to believe that this TAPE can go UP forever, my sane & rational mind refuses to believe in never pullback scenario......

Overall Chinese stocks are trading near lower end of trading range, this is hard to understand why, when everything is going UP, UP  & UP...

What i have done is reduced my total exposure to lowest level for a week, i may buy selective stocks for earnings play and that list is extremely small.

Good luck with your own understanding of this TAPE.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed