SHHH! DON’T SAY TOO LOUDLY THAT THIS IS A BULL MARKET!

You have to live on Mars if you don’t see that. I am still amazed day by day when many smart guys are telling me that they are planning to open short on European and US indices. Ok it is a free world, anybody can do whatever they want, but I don’t get it why they are trying to catch up the short side if the long side is the winner one. This is a brutal bullish market week by week SP500 and DJIA hit new record again, Dow Jones made 26th times this year and 43rd time the SP500 closed in record territory this year. What I can only recommend “Don’t argue with the tape.” Now the tape says pretty clearly just buy this market don’t short.

Yesterday European breakout from 10 days ranging was a clear sign of bullish momentum. In the last 10 days the volatility was extremely low, it is normal before the storms. The SP500’s volatility was extraordinary low, was one of the lowest one in last five years. This usually happens in December or in August and typically before big moves and rallies. So we are expecting more gains in European indices like FTSE, DAX and CAC40.

What will come? It is more sense for more gains for sure. The yesterday break out in Wall Street and Europe was only a bell for more records. The bulls have been so strong in the last four weeks and we are forecasting they stay with us further. Would it be bubble or there is any turning point I don’t think so. The bulls just started the ride in middle terms.

Take a look at the chart and tells you better than 1000 words what is going on now.

The BFM Assets Team.