The end will be astonishing !

That is the end of this bear market, the final leg of this bear market, which we are 100s of SPX points away. American public is unfortunately once again lured into the belief that things have turned for the better and a new bull market has began. The same game, different players. From Bernanke to Greenspan to Bush to Paulson... These people cost some of the average Americans more than their total life savings.

Acceptance did not come until SPX dropped below 1000 where we saw some geniuses like Buffet and Hussman calling for the end of the bear market and attractive valuations. For a moment It confused me but like all other human beings, my thought process is adaptive. Just like how the market is an adaptive dynamic entity. In March SPX plunged to 670 where I covered all my short positions but I knew it was not over.

Up until now, once again, the same old tricks has been played by a modified team masterfully. But this time, they used not only what they have in treasury, but everything they can get from public. This is where the death of market fundamentalism becomes obvious because we shall observe the fact that current valuations and numbers has been adaptively changed in time. That is why the coming sell off will be astonishing, nothing to hang on, no hope to hold on.

At this point anything that implies otherwise will not make any sense to me because almost everything I looked at confirms what I said. That is, trend studies... Trends are the only tool that show you the faith with high accuracy. Because these lines create your sentiment, market internals, shape your oscillators... Because trends are created by the economic realities.

I watch almost all sectors and indices along with 100s of major components. When we have this many stocks and indices back-testing xTrends, the market always formed a massive top that lasted months to say the least. Even Shanghai Stock Exchange showing a 50% sell off from here on by 2010.

The current trading range on SPX (800-850) will be the last deception on your charts. That is, the market will likely move within this range in a way that it will give the impression of invincible strength. Several upside and downside penetrations will occur during the process to trap and lock. This will eventually unclog the system for the next downtrend.

The last thing, which is not related with the topic but some readers. At the beginning of April, I recognized that there will be a lengthily topping process. Therefore I covered my premature short positions at 780 then shorted at 840 to cover around 810. I went long around 800. Now I am short right below 850. All of these moves were timely and profitable unlike what some trolls try to advertise in media.
I will not talk about why these people do it because the psychological part of the market is complicated but there is always a causal connection in human behavior. Only reason I can think of is the punishment of the market. Position and risk management is where we say devil is in details. I don't know how many people wants to see xTrends as a trading service rather than a financial blog?