NEW YORK (TheStreet) -- Another day of the short hedge funds covering at the all-time highs. This is becoming rather amusing to watch.
What is even more amusing is to see the S&P 500 Trust Series ETF (SPY) volume close trading at a new 2014 low of 58.3 million shares only to see the after-hours hedge fund trading take it to 71.8 million shares. Can you say manipulation?
The DJIA closed Tuesday up 69.23 points to 16675.50 while the S&P 500 closed at 1911.91, up 11.38 points -- another new all-time high on air. The Nasdaq finished up 51.26 at 4237.07 and the Russell 2000 closed up 16.01 points at 1142.20.
The Russell 2000 index is still in Trend Bearish territory while the DJIA, S&P and Nasdaq are in Trend Bullish territory. Trend is a three-month or longer time frame.
It has now become very important for me to discuss the degree of risk that is prevalent in this market.
According to my internal algorithm numbers, the large-cap sector -- stocks with a market cap of $4 billion or higher -- is signaling 32 stocks with an extreme, overbought condition versus three with an extreme oversold condition. That is a 10-1 ratio. I am speaking of stocks such as Facebook (FB), Yelp (YELP), Workday (WDAY), Tableau Software (DATA), Linkedin (LNKD), Yandex (YNDX) and Ctrip.com (CTRP). These all have an algorithm number of 99 or higher out of 100. The extreme oversold have a number of under 1. These numbers can be found at www.strategicstocktrades.com.