The Wall of Worry is Intact

[william the wie]

Put buyers are discounting an annualized 45% downturn on shares:

With PEs less than the annualized Earnings percentage growthrate. (PEs should equal the 5 or more year average earnings growth rate.)

With enough tangible assets to make liquidation profitable.

So many put buyers that put covers will greatly limit declines.

So, how soon do we run out of bears?

 

[Toro]

The public is still generally bearish despite the near-term bullish indicators.

 

[william the wie]

What is happening with all of the seasonal trading systems, Dow dogs and similar "Sure" things? I would think that when they kick in early next month, one thing I worry about is all the ETFs running on automatic pilot. That will eventually bite us in the ass but when?