NEVER FIGHT WITH THE TAPE...

Absolutely true because against all the correction fears, the market is still bullish mood and gain further day by day. Against all concerns in the last couple of weeks the market hits new historical highs. For instance the SP500 future right is at 1.905. The main consensus that the market is in bubble and need to be burst today or tomorrow. But as Jesse Livermore once reportedly said „The stock market is never obvious”. If some guys out there think they are smart enough to figure that out when comes the correction I have to wake up them, the market always moves to disappoint the masses.

The market always goes that way which creates the biggest pain. And, recently the consensus is to sell and in the last one week the market hit new highs again and killed the short runners.

All smart guys including Paul Tudor Jones is cautious. I have discussed with some traders in the last few days and their sentiment is extremely negative, and now they are surprised the market jumped higher again. Last week at SALT conference in Las Vegas David Tepper said, "I am nervous. I think it's nervous time." He continued, „the market is probably OK. But it's getting dangerous." The respected trader Ralph Acampora stated last week “I have a sick feeling a 25% crash is ahead.” Many of my friends also said to me they are flat or start to short the market because comes at least a 10% plunge in the market pretty shortly. I could bring around ten different stories just from the last two weeks how many people warned me about the bubble.

But, the fact is that they are wrong. I am not laughing on them, I am only shocked how we are not possible just read the tape or put the SP500’s chart on the wall step back 10 feet and you will see this is a bull market. You have to buy the dips and don’t sell the tops. There is still opportunities and I doubt the market is overvalued.

The BFM Assets Team.