(As shown on the chart) is technically,showing that the underpinnings or support
of this benchmark index continues to perceptively weaken, even as price rallies to all time historic highs.
That's inherently a warning sign,that this market is highly priced
top dollar merchandise,and it's getting more expensive as time passes.
However also noteworthy in my observations as a day trader
is that the market refuses to drop significantly thru any type of meaningful support
and importantly is turning patterns into resolutions,
which equates to a doubly reselt.
When then bears cannot take the market down, you know that the big boys and the big money
simply do not want to take this market down right now.
This coming week,will see a slew of quarterly from the biggest companies in America
as well as a meeting mid week.
The Fed is on record that they will continue to support the market
with large scale dollar buying no matter what, till the ill economic effects of the pandemic subside.
in now brewing in the US as companies willingly begin to pass on price increases,
with businesses and consumers now being forced to pay higher costs in 2021 even in a supposedly pandemic ravaged economy.
This is the most unusual economy in the US that I have ever see.
There are no written academic play books on how to manage it, or for that matter invest in it.
My advise to you is to continue to follow the money.The very big money.Take your cues from them.
Until something substantial breaks on the horizon, this is a market that right now simply refuses to go down.
As a writer friend of mind observed this week,don't be caught "flat footed" by this market,
You shall, and will pay an exceeding high price,.if you do.
Woods of Connecticut.
My current expectation is a slight pull back early next week, then another ferocious rally up to 3900-3920, then (in late Jan / early Feb) just when the last bear has folded and everybody has become convinced that the market can only grind higher forever - the realisation that the new strains (U.K., Brazilian, South African) of Covid are more dangerous, more contagious, and responding less well to the vaccines, will cut the spring and the market will rush full pelt for cover.
To me it actually feels remarkably like February last year when the market had exactly the same feel to it until it melted down in just a few weeks.
I don’t rule out one last mega-rally in the spring as the central banks cut rates to (further) negative and print (even) more money but the fall out thereafter will be dramatic.
Covid has still not written its final chapter, I think.
The S&P will still see the lower side of 2500 within 18 months from now.
One, if not the greatest stock market bubble of all time.
I have no idea. One simply can’t predict this can gif mass hysteria.
So I spent the required 30 minutes on my Sunday evening watching this.
Quite fascinating/ sobering viewpoint.
He is a billionaire, but honestly, his views do remind me a lot of my own.
Thank you for bringing this interview to my attention.
Keep up the good work!