Like a broken record!

Like a broken record, major indices remain stretched, extended and overbought while bullishness has become rampant. In fact, our sentiment numbers are almost surpassing the numbers we have seen when the market was topping into October.

But everyone continues to ease…everyone is printing money…central bankers do not shut up about the potential for more QE here…and as you know, markets still love it. And in case you did not know, at the ECB…DEPOSIT FACILITY UNCHANGED AT -0.20%. Yup…that’s you giving them a toaster, not the other way around.

Some of the big financials we wrote about indeed moved above resistance but that will need to stick. And the SEMIS just keep rolling. Like a broken record, if the semis and big financials are working, there is little chance of lower prices.

Just keep in mind, this move up has become a little quieter with the air of nothing can go wrong as we are in December. From extended conditions, a pullback can happen at any time…so be ready. That said, a pullback is welcome and would be buyable at this time as there continues to be underlying improvement.