My concept is very simple... not to be disrespectful or anything, but a public forum of "traders" is representative of dumb money. The vast majority of ET members remain extremely bearish even in light of this recent earnings season rally. Don't fight the tape!
I for one do think that the economic situation is very bad... unemployment is high, money supply is out of control (hence a weak dollar), people are still losing their homes/defaulting, there's no stability in the price of crude oil, exceptionally low consumer confidence, etc. But I will disprove myself by saying this... the stock market is a leading indicator whereas all of these criteria are mainly laggards.
Secondly, I'm going to treat myself to a history lesson. There have been so many "dooms day" aka the world is coming to an end predictions, and ALL have been wrong. We suffer recessions every decade, so what makes this so different? Perhaps it's "worse" than most other recessions, but it is what it is. No two times are identical. Booms and busts are part of the game. While it looks like the world is coming to an end, history shows that these bubbles happen all the time.
I was a bear too, until recent price action proved me wrong. Call them bear rallies or whatever you wish but I'm not fighting the tape. There is plenty of money left on the sidelines to sustain this move. Price action, price action, price action. Dow is above 9000 and S&P approaching 1000 from the 650 lows. Call it whatever you want, but someone is buying.... And it's not ET members, but institutions.
These past two weeks have been exceptional... even with lower expectations on earnings. Nasdaq was up 12 days in a row! 12 days! Would've been another day had MSFT not disappointed.
I for one do think that the economic situation is very bad... unemployment is high, money supply is out of control (hence a weak dollar), people are still losing their homes/defaulting, there's no stability in the price of crude oil, exceptionally low consumer confidence, etc. But I will disprove myself by saying this... the stock market is a leading indicator whereas all of these criteria are mainly laggards.
Secondly, I'm going to treat myself to a history lesson. There have been so many "dooms day" aka the world is coming to an end predictions, and ALL have been wrong. We suffer recessions every decade, so what makes this so different? Perhaps it's "worse" than most other recessions, but it is what it is. No two times are identical. Booms and busts are part of the game. While it looks like the world is coming to an end, history shows that these bubbles happen all the time.
I was a bear too, until recent price action proved me wrong. Call them bear rallies or whatever you wish but I'm not fighting the tape. There is plenty of money left on the sidelines to sustain this move. Price action, price action, price action. Dow is above 9000 and S&P approaching 1000 from the 650 lows. Call it whatever you want, but someone is buying.... And it's not ET members, but institutions.
These past two weeks have been exceptional... even with lower expectations on earnings. Nasdaq was up 12 days in a row! 12 days! Would've been another day had MSFT not disappointed.
