Market took off today after much better than expected consumer confidence. Our analysis shows massive short covering. Prior to the number, most active professionals were positioned short and they were trapped after the number.
We put more stock in personal spending numbers. It will be interesting to see if the consumer confidence turns into spending.
Based on our proprietary money flow indicators, we tend to dismiss today’s trading as noise.
Our short term model stays net 10% short.
Our intermediate term model stays 30% short.
