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Never going down again.

Byaaronmat-admin
1 Comment

I think it was a few weeks after QE3 that we started to title our reports “NEVER GOING DOWN AGAIN.” We did this because the monstrous printing of money put a bid…another bid and another bid into the market. It was persistent with hardly any selling.

It almost feels the same. After a topping out process, a top and a mini meltdown, markets have again reacted to a crapload more of QE across the globe. We are amazed how easily fear has turned into greed again…and WITH NO IN-BETWEEN. Usually after a drop of such kind, the market has to earn and work its way back up. In this day of QE, hot money and whatever else, there isn’t any in-between. We have just had the mother of V-shaped moves up with very little selling in sight. Of course, that is unless you own SLXP this morning.

Large caps remains the strongest…mid-caps are just that, in the middle…with small caps continuing to lag like they have for the better part of a year.

Many are saying this cannot continue but those people had better look how 2013’s move off of QE lasted 6 months…the 2012 move lasting 4-5 months…and the 2010-2011 move lasting about 8 months…again…all off of massive money printing announcements. Remember, in the past, just having 0% rates was unheard of. That was considered to be ridiculously easy monetary policy. Now it is the norm.

We will break apart sector by sector over the weekend.

One Comment

  1. The market is over bought here.

    I see some signals of a pull back, or a rotation to rally in lagging sectors.

    We shall see which.

    I do see an indicator, that shows some fear in this market as we rally, so the big money may expect a pull back anytime .

    If we do pull back, I’d bet it will not be much, and it will likely be a chance to get in,, and that bet is on Japan just printing another trillion, and the ECB making statements that they will print. So far ECB has only made the statement, lets see what happens when they show the money.

    Lets not forget we still have zero interest rates in USA..

    My bet is we simply rally…..and rally…..and rally, as the big banks print and dump, print and dump print, and …dump the money into the market..

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