DEJA VU

You might have Deja Vu feeling if you hear news from stock markets day by day. Almost each day there is a new high and closes the market on record over and over again. Each day seems to be the same. Like in the fascinating and one of the most hilarious Bill Murray’s movie “Groundhog Day” when he finds himself in a time loop, repeating the same day again and again.

https://www.youtube.com/watch?v=tSVeDx9fk60

The market works like that recently. At this chart of SP500 below (by Michael Batnick) the red lines are indicating the new all time high prices in 2013 and 2014. The funny part is the last 5 weeks, it is almost the entire November is in red.

The bullishness of the recent US indices are brutal and has never happened before in the history. The S&P500 has spent above its 5-day moving average for 28 straight days. This is a new record and surpassed the prior one of 27 days from 1928.

All in all, this monotony might be boring for most of the investors, but I love the boring staff if we make money. I love to be bored while making money than being thrilled, but burned out. This is the magic of trend-following method that you are in the big moves and following the winning side. Be in the market is the bottom line since honestly nobody knows when comes the big rallies, so follow the trend and ride the waves.

The BFM Assets Team.