Nov. 6 - Nov. 7, 2014 Markets & Contrary Opinion, Movie "Fury"

With both the DJIA and DJTA making new highs Nov. 5, the market gave us a Dow Theory bull confirmation signal. However, the NYSE A-D plurality at +548 was weak for a +101 point day on the DJIA. The R2K was up only .14%. On Nov. 6 the NYAD A-D  posted a weak +415 with the DJIA up +70 and the DJTA up 113. With the Dow Industrials and Transports again making joint new highs on Nov. 6, we have a second consecutive day of Dow Theory bull market confirmations. The NASDAQ looked stronger on Nov. 6, up 17.75 and threatening to make new highs. The R2K did better on Nov. 6 than on Nov. 5, with the R2K up .41%. The RS of R2K vs SPX, after rising above its 50-day MA, has made a short-term double top in the .5850 area.
So the large and mid-cap indexes have put in 2 solid up days without strong participation by the A-D line or R2K. I still don't think that type of market segmentation can continue indefinitely in this bull market, even though it has done so in past bull markets. We need to see much increased strength in the A-D line and the R2K for this uptrend to continue as an impulse wave rather than fizzling out and giving way to a corrective wave. The first link is to $RUT:$SPX (relative strength of Russell 2000 vs S&P 500) and the second one is to the NASDAQ:

http://stockcharts.com/freecharts/gallery.html?%24RUT%3A%24SPX

http://stockcharts.com/freecharts/gallery.html?$COMPQ

Link to Fat Pitch article discussed below:

http://fat-pitch.blogspot.ca/2014/11/what-fund-flows-tell-us-about-current.html

The correct procedure is usually to take a position opposite to the majority, the famous contrary opinion approach. Is there a reason not to do that today? If there is one, it would be because the number of market participants is already much thinned out from what it was before the 2002 and 2008 bear markets reduced the percentage of public participation in the market. While the amount of money being invested is higher than ever, the number of people investing it is lower. So if we count all the middle class (and former middle class) people who are staying out of the equity markets, we could make an argument that such a phenomenon is itself an indication of widespread skepticism. The players who are left in the market are mostly the wealthy, the institutions, and the professional traders. So the bullishness that Fat Pitch is reporting might just be a measurement of what different segments of informed investors are thinking and doing. Of course, my argument could just be a rationalization for remaining bullish when I should just take the Fat Pitch documentation at face value.
If anyone has seen any recent data to contradict the above hypothesis, it would be enlightening to see such information.

By the way, I liked the movie Fury with the demurrer that the final scene of a single crippled tank and it's crew destroying half or more of a Waffen SS batallion assumed a great deal of combat ignorance on the part of the Germans. Audie Murphy's exploits in driving off a German company with a 50 caliber machine gun mounted on a half-track in NE France was a real life event that gives the Fury finale a hint of credibility. I also read that the German Army awarded a Romanian soldier the Iron Cross for an incredible exploit in fighting off a large Soviet force in the Ukraine, but I don't remember the exact details .