Out Fox The $treet

Several months ago Stone Fox Capital suggested that the market could 'Melt Up' in a scenario similar to how it melted down last year. During the span of a few weeks the market quickly dropped from above 1,200 to below 900. When this happens either on the way up or on the way down, it leaves very little resistance when the market revisits those levels in the opposite direction. The market has been stuck around 1,100 for several weeks now so its likely to either move quickly higher to the 1,200+ level or finally have that 10%+ correction that everybody on Wall St wants. The below chart from Ciovacco Capital highlights that potential. It seems unlikely that this surge off the bottom will end in a whimper but rather a blow off top with money rushing in from the sidelines. Since we've highlighted that such huge rallies off a bottom after a major market decline never end at year end and usually last more then a year, it seems unlikely that a correction is pending. The more lik...

Stone Fox Capital has been adamant that we expected the market to continue to melt up the rest of the year. From both a technical and fundamental view, it appears that the market needs to hit at least 1,200 to brush off the huge falloff from last year. Now when we get to that level it doesn't mean that we'll rush off to new highs above 1,550. Heck we won't even be close to the old highs and that is the part that so many shorts continue to miss. Yes, the market is up 50% off the lows but it's still so far from the highs. The level of the rebound is determined by the size of the drop. Barton Biggs of Traxis Partners went on CNBC today and discussed this issue. Hes in the camp that the rally has plenty more room

On Mad Money last night Cramer basically backed up our theory of a huge melt up in the markets to above 1,200. It was just last Wednesday that we wrote our theory and we had originally brought up the idea over a month ago. The comments on SeekingAlpha.com were pretty negative regarding the concept of the market moving 1,200+. Hmm...maybe we'll get the last laugh. He uses chart analysis from Dan Fitzpatrick so its backed my more then just his crazy ideas. Fitzpatrick even thinks a move to 1,272 is very possible. See below for the video and his 6 reasons to back up the chart: Cramer is taking a deep dive into a graphic representation of where the market can go, courtesy of Dan Fitzpatrick of RealMoney.com. The technicals point to a "head and shoulders" pattern and just about any way you look at these charts, the S&P looks to go to 1200. Based on the furthest distance from its 200-day moving average, Fitzpatrick also thinks the S&P could go to 1272, which is a 24% m...

You can't watch a clip on CNBC or Bloomberg or read an article on numerous websites without somebody talking about a correction in September. Even SeekingAlpha has a focus on buying gold to protect from the 'inevitable' downside. Guess the market got that start on the 1st day with the SP500 down over 2% and then over 0.5% soon after the bell on the 2nd day. Every poll I see the pollsters expect a much larger chance of a large drop rather then a large gain in September. The action on the first just seems overly convenient to suck in the shorts that have been expecting a huge sell off and Monday was there confirmation. But is that what will actually play out? Watching Fast Money last night I was appalled and then delighted to see that they featured the PermaBear trio of David Rosenberg , Peter Schiff , and Roubini . One decent down day and they pull all the stops on the negative side. Though I do agree with Schiff in that investing outside the US will see better returns he...