Every dip, or pullback, especially notable in stock index futures in overnight trading since the bottom made at SPX 4233, has meet with buying around 3-4 am, after selling off in earlier night trading.
This "new" time cycle buying, overnight in futures, has propelled the S+P 500 over 4400, with no signs of "letting up"
Traders realize 110 % that they will be "immediately" rewarded by "buying "any kind of appreciable selloff. The market is proving them right, time after time.....
In the next 72 Hours, major tech stock earnings from Google,Microsoft,Apple, Facebook, and Amazon will be released.
These 5 stocks represent almost 25 % of the S+P 500 Index, because of their large multi billion dollar size. Think of that. Only 1 % of 500 stocks, control nearly 25 % of it's value.
Internally, the participation and breath of the broader market continues to deteriorate below the surface. But who really cares about that? Certainly not the big mega cap money managers who continue to grease the skids in return for larger and larger outside gains
This is "psyche" for broken record after broken record of new historic price highs for stock prices in the US in 2021. A very astute writer /trader here on Tradingview, advises me this is how the marke works. Almost a complete "mechanical approach to keep prices moving up, and up.
I'm convinced that this market, not that I'm making any quantifications will ultimately pack the entire stupendous crowd, standing room only, no more seats "completely in" at the close of a trading., forcing everyone to pay higher and higher and higher prices for the cost.for the privilege of getting "in". And getting less on the way up.
As a sidebar,I would advise you to look at the price of continuous lumber futures, which peaked in May 2021, two months ago above $1500 Cubic Board and recently the same lumber was trading around $500 Cubic, a drop of 67 %,in just 2 months That is a crash
Buying the dip in the commodity casino stock market in the US will ultimately come with the same financial cost, in my humble opinion.
But let's not get ahead of ourselves, Enjoy the bull market ride of a lifetime, while you can. Just remember,as you itemize your outsize gains.
if you get in at these stock prices you ultimately will have to get out. Good luck on that.
I am sorry to say that I am now absolutely convinced that until the Fed raises rates, this market is only going to keep going up. Inflation with no increase in rates is actually great for corporate profits. It has now become very obvious that the Fed will do everything they possibly can to avoid increasing rates. So….
This market is "baked".
The only statistical phenomena is how long they are gonna leave it in the oven.
jacobit
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@The_Unwind, that's fine, I'm waiting at the window and the smell is wafting through town
Kcchay
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@YouCannotBeSerious, inflation with no increase in rates will destroy the us economy and brings about run away inflation for many years to come.
YouCannotBeSerious
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@Kcchay, Yes, I completely agree. Please don’t interpret my comments as being supportive of Fed policies. I think the Fed snd other central banks are setting us up for economic disaster. However, UNTIL they raise rates, the stock market will likely continue to go up. And the problem is, they simply can’t raise rates because the entire system is low addicted to zero rates.
We face a desperate inflation-ridden future. At some point the whole thing will collapse. It’s inevitable.
Kcchay
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@YouCannotBeSerious, if investor think the inflation is getting out of hand, they will dump us 10y t-bills and the yield.will be going up and this interest rates the fed have no control whatsoever. And if yield is going up, then the impending collapse will happen.
YouCannotBeSerious
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@Kcchay, Yes. I suppose the point of disaster will begin when the majority finally stop believing the Fed’s story of “transitory” inflation. I find it amazing but for now I think the vast majority still believe them. Perhaps it’s because we have had so many years of delflation, people simply cannot get their heads around it.
I would stay true to your ideals and basic market instincts.
This market "will" plummet unexpectedly.
The only question is when it does that to the vast majority, complacent, and long this market