And just like that November is gone. If you get my newsletter, you know that this month has been far from my favorite.
After starting off on fire and rallying 6%, the markets have cooled off majorly, drifting sideways for a loss of 0.3%. What’s different about this consolidation is that it has lasted two weeks. That’s eight more days than the average sideways top of the last four pullbacks.
Based on the frequency of pullbacks and the volume during, I really have to think that the Smart Money has been dumping their shares as they fuel the rally with fabricated data.
Here’s a chart that shows how much the short-trend has flattened out:
The trend change isn’t a terrible thing. Until prices puncture through the bottom of the up-trend, the rally will technically be alive.
Because this new flat trend has lasted so long, it becomes a point of concern for bulls and a source of hope for bears. We can’t make any assumptions based off the action, but this is a very difficult market to trade in the short-term.
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