My bearish call was challenged in July when the Dow Transports reached a new all time high at 5, 627.85 on July 7.
In fact, so great is the affection for Apple that anyone who puts up a bearish call would incur the wrath of the ordinary investor.
Robert Shiller, the Yale economist whose bearish call on Nasdaq was so perfectly timed in 2000, was too early in saying home prices in hot markets are due for a crash.
His best bearish call in 2006 was one he made on Old Dominion Freight Line (nasdaq: ODFL - news - people ) in the second half of the year, during which time the stock fell 21%.
The Dow Industrials did not follow the Transports so I continued my bearish market call, as valuations remained overvalued.
Hedge fund manager Jim Chanos returned to his bearish China call recently when he said that China real estate was Dubai times a thousand.
What would end this bearish market call is a Dow Theory Buy Signal, which is defined as follows: A Dow Theory Buy Signal will be confirmed if the Dow Transports close above its May 3rd high at 4, 806.1, and the Dow Industrials close above its April 26th closing high at 11, 205.03.
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That said, put volume is in near parity with cal volume so far today, with 1, 091 of these typically bearish bets crossing the tape, compared to call volume of 1, 147 contracts.
Traders might consider a January 2011 120 call to take advantage of FFIV's momentum and bearish sentiment backdrop.
Traders looking to hedge a short position on the networking sector might consider a May 40 call to take advantage of HRS's momentum and bearish sentiment backdrop.
In fact, some 7, 826 of these typically bearish bets changed hands, compared to volume of just 2, 586 call contracts.
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Investors looking to benefit from an unwinding of this heavily bearish sentiment might want to focus on the SOLF's August 7.50 call.
Options traders also jumped on the bearish BAC bandwagon on Friday, as 300, 834 puts crossed the tape compared to 163, 457 call contracts.
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Also, much of the margin-call-related selling pressure in gold and silver has now likely already occurred, which eliminates a big bearish factor in the metals.
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