SHORT-TERM GAIN AND LONG-TERM PAIN

As far as I see, this is the new mantra between investors. They are still arguing with the tape, arguing with the harsh fact that this market is overwhelmingly bullish. Now this new phrase suggests, they accepted okay the market is gaining, but shortly comes the pain. In this interpretation in short-term the perspectives are good, but in longer term the picture is more dangerous.

This is the echo around Wall Street now. Why and how? What we only know the market is bullish today and all of us are only guessing about the tomorrow. So, I am super okay if I know and understand the today movements of the market, the clashes of bears and bulls. Honestly 90% of the investors don’t really know what is happening now.

There is no doubt that US markets are bullish:

• DJIA is over 17,000 
• S&P500 is flirting with 2,000. 
• Closed the S&P500 within a striking distance from its record closing level, reached on July 3 
• The S&P 500SPX achieved an intraday record above 1986

Yesterday closing:

• Dow +0.4% 
• Nasdaq +0.7% 
• Russell 2000 +0.8% 

That is so funny that the market always needs some anxiety and fear. The new scares are the followings earning plunges or FED tightening policy. But against all kinds of anxieties just take a look at the DJIA chart and easily you can pick up the market is in a bullish momentum without any doubt.

The BFM Assets Team.