Shades of August 1987

For those who were there in 1987, and later in 2000, the market’s rise was relentless … until it wasn’t.

With the SOXX pushing through to new highs (all shorts closed), one gets the feeling, unless there’s a reversal soon, we’ve now entered a very dangerous stage a la 1987 (not advice, not a recommendation).

The bond market’s signaling that ‘something’s up’. The financials (XLF) have just topped and reversed. Banking (KRE) appears to be at some kind of top and on it goes.

Financial Sector XLF, Daily

If I was short this sector (FAZ-26-01), the stop would be today’s high (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279