US/World Index Futures pointing sharply higher today. Overnight international trading was in full rally mode. The Prophet says, don't drink the cool-aid! After a 3-month rally that rivals anything since 1930 in points and percentage gains, the market is screaming BUY me Mr. Retail Investor. If the retail guy has not bought this market yet, they are now feeling how bad they are missing the boat. Mother Market Rule: Markets move on fear and Greed!
the Prophet suggests that the only boat they are missing is a short-term high and the hang-over they would feel when the market fails.
Mother-Market's rule: Buy on rumor, sell on news works back-words in bear market rallies. The GM bankruptcy today is the news event that in a bull market would send stocks sharply lower. Coupled with the possible 1/2-million layoffs which will come from the bankruptcy filing is the negative news the market is reporting. So if you want to know "Is this a Bear Market Rally?" Ask yourself, in a bull market would this bring the market up or down?
Another noteworthy event, China is continuing to buy US-debt (like they now have a choice), since they are now tied to the US at the financial hip. Which is why the world has been calling the relationship - Chinamerica. (to be continued)
No comments:
Post a Comment