Only one word to describe right now…RELENTLESS!
Another travel report today…clear and concise!
The only way to describe a market that is stretched and extended and overbought is RELENTLESS. All we have to do is report to you the news.
The worst areas of the market have turned the corner and moved above initial resistance areas. This includes small caps, mid caps, oils, commods. Even the weak of the weak like Russia and Brazil are turning the corner.
The NDX is in new high ground. This is amazing and not amazing at the same time. Amazing because of how gross markets were entering October. Not amazing because a select few names gapped big on numbers.
Why we do not predict?
We were the biggest bears heading into October and rightfully so. We saw the top coming. We saw the ugly coming and the ugly indeed showed up. But the 3 days leading up to the Oct 2 massive reversal on bad economic news changed everything to where by precedent, we thought A GOOD LOW was in. But that did not mean a good low was in and if you asked us to predict what was next, we would have said a 2-3 week rally into resistance and then a resumption of the yonking. Instead, this now looks more and more like 1998…SO FAR!
We have been asked several hundred times how the market can keep going up as it continues to be reported that economies are heading south, earnings are terrible and the world is in a sea of debt. All are correct…but we must repeat the hash tag we put on all our market twitter tweets….#EASYMONEY! We used the word RELENTLESS to describe the market right now…but what is more RELENTLESS is central banks around the globe as even with 0% rates for years, even wth trillions having negative rates, even with the printing of upwards of $15-20 trillion, we stay at 0%, Europe announces an extension of printing and telegraphs more QE, Japan keeps on keeping on, China continues to print and slash and even Sweden…yes Sweden announces they are increasing their printing. We didn’t even know they had been printing, let alone increasing.
All this will definitely have a final comeuppance as precedent shows actions like this always end badly…but no number is too high for these people…so away they go. Remember, it is only bad when markets say so.
Unless there is another 911 or something that impacts everyone I don’t see a Bear Market or a Market Downturn of any substance. You Guys keep predicting a downturn and it never happens. The Fed and Big $ Controls the Market and will continue unless there a disaster that effects everyone.
We can no longer receive your program on the east side of Orlando. You need to get a second hamster to run the generator.
Where is Rohrback now? Is he IN?
Gary, I can explain to you why markets keep going up RELENTLESSLY. First, stop looking at your wiggly little lines on a graph, and second, let me introduce you to my girlfriend Tina. THERE IS NO ALTERNATIVE. I am retired. I NEED income to pay the electric bill, the phone bill, my doctors, etc. Central banks have made it IMPOSSIBLE to get income from CDs, bonds, annuities, or anything else. They have made it IMPOSSIBLE to pay my bills (with one and only one exception).. I can buy into a portfolio of stocks that reliably pay high dividends (the aristocrat stocks for example). Right now I am getting a return of 5.7% on my money. This allows me to pay my bills. NOTHING ELSE WILL. My choice is: 1) I buy and hold dividend paying stocks, or 2) my wife and I get thrown out of our house and live on the street. Which choice would you make??
Terms like “resistance”, “support”, “200 day moving average”, etc. are just nonsense to me. I have to hold on to my stocks and buy even more when there are dips. Central banks have made this new reality in which we live. Like it or not, this is where we are.
Personally I think the central banks are lunatics and they will eventually destroy the world’s economies. But that doesn’t make any difference to me when the electric company calls and threatens to turn off my electricity if I don’t pay my bill. I have no other choice (TINA). Do you understand now?