A new bull trap?

[trickshot]

Quote from Lucrum:

Isn't it technically only a "trap" for those who buy late into the move and then fail to cut any losses short when it reverses?
IOW it doesn't have to be a trap unless you let it.

Its too late to cut losses after a reversal because trends/reversals cannot be predicted, we only know them in hindsight i.e its not possible to see a trend/reversal until after the fact.

 

[Bear Trader]

Yes we are back to the bull market - everyone go long. I need your money

 

[intradaybill]

Quote from trickshot:

The market will interpret news (or the lack of it) in whichever way it wants to, and yes I know what you are thinking now, unfortunately this is what makes the market so unpredictable.

+1

 

[antelope]

Quote from Bullverine:

Or another way to say it is "what is moving us higher?" ... Bernake said nothing, Euro zone offered no solutions, U.S. politics is still polarized, debt limiit issues have not been addressed on an meaningfull level. So why is the market getting optimistic? I am not being sarcastic or ironic here, I really dont understand and would like if someone could give me some clues.

I don't know about the US, but lack of news from Europe is scary.

ECB is currently buying sovereign debt, but no one knows how much and where. EU banks are still too leveraged, overexposed to bad debt and short of cash as Lagarde suggested this week end, but she was soon threatened to be wacked (politically) if she kept on saying it. But the real threat is economy slowing further even for the best in the class.

The word on the street is everyone keep their mouth shut. Now, this in Europe generally means: hold your breath and get ready to go under.

I have been wrong before though.

 

[piezoe]

Quote from Bullverine:

Or another way to say it is "what is moving us higher?" ... Bernake said nothing, Euro zone offered no solutions, U.S. politics is still polarized, debt limiit issues have not been addressed on an meaningfull level. So why is the market getting optimistic? I am not being sarcastic or ironic here, I really dont understand and would like if someone could give me some clues.

Assuming you are a trader interested in short term market moves, you will eventually realize the folly of trying to apply logic to the market. This is especially true at times of low participation. There are days when logically the market should do this or that, and eventually it often does, but the market just rattles around pushed hither and yon by I suppose the actions of locals in the absence of any significant institutional participation. This might be a good time to give your dog a bath.