The bulls are strong so far and having a great run. Remeber we had Fiscal Cliff in December/ January and in October Debt Ceiling anxiety. In April Cyprus Bail Out. But the market ignored all the bad news so far. Beside the quiet summer months in each month we saw new historical highs almost in all markets. This week there were new records again.
DJIA up 19%
SP500 up 24%
Nasdaq 30%
Nikkei 50%
Just look at the chart it tells everything (by CNN)
Do we have any warning signal?
Yes, we always have. That is the part of the trading. If everybody would ecstatic it could mean the end of the bull market. Now many analyst and market actors are crying about the bearish scenario. Forget that guys. You know how many times I have heard this same argument in the last 2-3 years and just look at the chart. They were wrong.
They are complained about the PE ratio, abut the bad earning numbers ... etc. They are scared when occurs any correction. But this is the behavior of Mr. Market. Markets are pulled-back and paused always. This is a forever rules of markets. From technical point the market just made a breakout after 13 years of consolidation. So, I do believe this is not the end of rally.
So again and again, the indexes and stocks are traded near record highs.
No comments:
Post a Comment