Expect market to correct a bit here. There is a bit of froth developing currently. But any correction would be of short duration. It will give just enough time for the bears to crow and double down on their underwater shorts. If you have been keeping eye on the bears, you would have noticed that when there was a brief correction, they quickly advised followers and worried hedge fund managers to double down on short side. Those kind of bets are good for markets as shorts have little conviction and rush in to cover on hint of rally.
Based on my databases and data mining, I am looking at good earning based rallies in many issues which have been neglected by the market for last two earnings season. If you have been watching the earnings trend, there are some concerns but no major worry areas so far.So the strength should persist till earning picture become clear.
It is the nature of market, that it will start dropping only once the last bear has thrown in the towel. The bears have been too stubborn and continue to find new things to worry about. There is little enthusiasm about the rally. So market will keep climbing the wall of worry.
4 comments:
easy guru, you typed: "There is little enthusiasm about the rally."
have you ever watched CNBC?
i don't make a practice of it, but one day last week, i was working from home and put that channel on... if you go to dictionary, and look up enthusiasm, you will find a reference to CNBC and DOW all time highs, and maybe to that book dow 32,000 or whatever the number is that just came out on the cover of that book... who watched CNBC? the same people that watch crammer - clueless mom and pop retailers...
i agree, the last bear needs to throw in the towel...
The only time I watch CNBC is when I take my car for servicing. The auto shop owners real ambition is to be a trader and so he has CNBC on his overhead TV.
Fortunately, now with so many blogs written by traders and analyst. it is very easy to gauge enthusiasm for rally. I read all the blogs on trading and definitely the most popular ones. You can figure out from what they are saying and from the discussions on comments section, what is the mood of general trading crowd. There are 4-5 blogs which have very high followers and if you read them and comments on them, you get fairly good idea about what they and their followers are thinking and how they are positioned.
R u gonna blog about earning picks b4 you trade in them?
Sometimes I do that but not on all trades. Definitely not on where I expect slippage.
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