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Bears are getting their asses kicked, and it will get worse for them

Amazon (AMZN) reported earnings, and the stock soared more than 7% AH. That will obliterate the bears more as the stock will spur upward pressure in tomorrow’s open market. The GDP report and economy indicate that there will be no recession. Some market analysts, like Ed Yardeni, even think that we actually already had a recession and we are now recovering from it. I agree with him.

I also think that the low of this bear market was in October 2022, and we are now in an early stage of a new bull market. The choppiness and volatility are typical for this stage. It indicates that bears are in denial, trying to add more and more bearish positions as they refuse to accept the trend reversal and think that this is just a dead cat bounce. But that is not the case. Not this time. All bad news and bad future outcomes were priced in, and there is no more bad news coming. But if you are an idiot bear, you think the economy will collapse, you do not know why or what would cause it, you just have guts feeling, so you load up more puts and short positions. Just check the level of bearishness in any survey. Those levels were not seen even during the 2008 financial crisis! Do you really believe this is worse than that? And if so, why?

As the bears buy more puts and short more stocks, bull jump in every dip this creates. And the more bears short this market, the more they get hurt. And one day, they will finally give up and reverse their trading. That will be the moment we will have to recognize and get out. The market will see the parabolic spike before reversing and hurting these former bears once again.

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