Last week, we appeared on the tube as well as the radio show saying something we do not usually say. Those that have followed us for years know we interpret price and don’t predict price. We always laugh when someone tries to tell us where things will be a year from today. We are always amazed at ridiculous price targets. You do remember Dow 100,000 predictions back in 99? How about $1 million for bitcoin?
We simply stated that if we could get past September, we think the market could sizzle to the upside. Yes, we said sizzle. But was this predicting or was this interpreting what we have seen throughout history? We say the latter.
Our studies of markets going back to day 1 show time and time again, when markets break out of range to the upside towards the end of the year, markets usually experience one heck of an end of year. As we head into September, markets may be even jumping the gun as most major indices are now edging above previous highs off of a 7 month range that started with the old high from January 29 of this year.
The other part of this equation is that markets are at new highs with just about all media news being bad. We never thought that even the media could report and parade people on the air to downplay some darn good economic numbers, some darn good unemployment numbers, some darn good business confidence numbers, some darn good earnings numbers as well as many other stats that are just darn good. And let’s not forget how well markets have done. It’s almost like they are hoping for things to turn down. Frankly, we couldn’t care less why. We only care about price and right now, price is ignoring “bad news” of tariffs, impeachment, investigations and all that crap. As we have always told you…it is not the news, it is how things react to the news and right now, markets are in gear with most major indices breaking out of range. On top of that, all the worst areas we have told you to avoid like emerging markets…are finally in bounce mode. We would still avoid as U.S. markets are much stronger but if the worst stop going down, it is good news.
Lastly, we are sickened by some of the reactions to the death of John McCain. We are sure you know what we are talking about. We have only one thought about this man. He is a hero of epic proportions. Take five minutes of your time to read what this man went through. We have experienced people come apart at the seams when stuck in an elevator for five minutes.