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Happy Anniversary Bulls!
Today marks the first anniversary of the new bull market. Just one short year from the bottom and it’s as if the stock market has angel wings? But we know the devil by another name; “Angel of Light”.
Because traders and investors tend to go where the profits are you’d think that this was a healthy market. Markets don’t lie. We all know that volume drives prices. Don’t we? Then why has the average market volume declined while the stock market was going up. Shouldn’t more and more traders want to be at the party?
Normally, employment improves with a healthy stock market. Has that happened to you or those around you? Inflation happens in a healthy economy but our government tells us that there is no inflation. Should we feel good about that?
I don’t consider myself a bear. I’m a technician with a solid fundamental background. I follow technical patterns to tell me how other traders are thinking at the moment. One moment to another, one day to the next, it doesn’t matter that trader actions change. The underlying psychology doesn’t change so we can pretty much tell what is going to happen next in any momentary situation. Traders that are good at this will tell you that if the market is going up and is going to continue going up then volume is going to be increasing overall. If traders are confident that they can see the true market direction then they will pile in, and yet, this isn’t happening.
Happy Anniversary! Since we are here you may be wondering how we got here. Good market, a growing economy (no inflation though, eh?), and low unemployment. So if we still believe that the markets don’t lie, who is lying to us? Read the article below and remember, the stock market doesn’t lie. Though. sometimes it speaks in riddles.
“This Tuesday will mark the anniversary of last year’s US stock market low. Since then the market has rallied by 70 percent in a recovery only slightly less suspicious than a Madoff hedge fund.”
via How Have U.S. Stocks Defied Gravity for So Long? — Seeking Alpha.
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