The number of stocks above their 200 day moving average and the amount above their 200 day moving average is breathtaking. The rise has been relentless. But what baffles me is that I would expect there to be fewer cries for a correction in the face of 5 months of relentless upside.
The market really isn't overvalued here, if you think back to where we were 2 years ago. Yet everyone is looking for that elusive 5-10% correction. I think its very dangerous to try to short this thing, even though it looks like we've overshot to the upside. Strong markets stay stronger than most people expect. The stronger, the longer they last.
I expect this thing will go higher over the coming months and will top out in early 2010. Until year end, dips must be bought because I don't see a meaningful correction anytime soon. There is just not enough enthusiasm for this rally for it to die out yet.
Don't confuse the weak economy with the stock market. They are two different animals that operate on their own time scales and you can't say that the market should go down because the economy is bad. That is a straight road to the poorhouse.
The market really isn't overvalued here, if you think back to where we were 2 years ago. Yet everyone is looking for that elusive 5-10% correction. I think its very dangerous to try to short this thing, even though it looks like we've overshot to the upside. Strong markets stay stronger than most people expect. The stronger, the longer they last.
I expect this thing will go higher over the coming months and will top out in early 2010. Until year end, dips must be bought because I don't see a meaningful correction anytime soon. There is just not enough enthusiasm for this rally for it to die out yet.
Don't confuse the weak economy with the stock market. They are two different animals that operate on their own time scales and you can't say that the market should go down because the economy is bad. That is a straight road to the poorhouse.
