RSG weekly chart, page-242

Eshmun quote 18 Jan 2018

The punters are now running up the stairs of the stairway to heaven. DJIA racing away from its 50day MA. Look at how much time the RSI on this index has spent in overbought territory since the end of Sept last year. Doesn't look like normal market behaviour to me. Trump's proclaimed pre-election "big fat ugly bubble" is just getting bigger, fatter and uglier. Does this end with the forests echoing with laughter? Never has before. The most dangerous time for stock investors is the time they become most complacent.

definition of complacent:

"showing smug or uncritical satisfaction with oneself or one's achievements"

That's the key here and the lyrics tell the story.

And it's whispered that soon
If we all call the tune
Well Then the piper will lead us to reason.
And a new day will dawn
For those who stand long
And the forests will echo with laughter.

Stock investors are all calling the same tune and being lead to reason. They believe if they all stand long that forests will echo with laughter. Well the forests must surely be echoing with laughter by now. What happens when the laughter stops? The fear trade begins. Esh



In all seriousness in that post I say.

Look at how much time the RSI on this index has spent in overbought territory since the end of Sept last year.

Take a look at what the RSI is doing now. More bizarre. Oversold in 6 sessions but you wouldn't trust it to try and catch this falling knife. Esh