School is in session, fucked faces. If you thought the recent rally was special, you haven’t seen anything yet. According to the Bank of America stock market handbook, after periods of long consolidations, just like the 414 days in between new highs we’ve just enjoyed, markets tend to shatter the glass ceiling to the upside and rip out the jaws from bears.
There were 414 calendar days between the May 2015 high and the recent one, Suttmeier said on CNBC’s “Futures Now.” The S&P 500 has been churning sideways for much of the last 24 months , without a meaningful breakout. But it’s that lack momentum that has Suttmeier convinced we could be on the brink of the next leg higher.
He explained that since 1929 there have been 24 instances where the market went 300 calendar days or more without making a new 52-week high, and in those times the forward return was much stronger than average.
“The bottom line is when I look at these numbers and if we do follow this signal, 250 days out the average return is about 15.6 percent, the median return is about 14.8 percent and the market is up 91 percent of the time,” he said.
Being the data loving guy that I am, I am forced to accept this porridge without complaint. Any technician will tell you the longer the consolidation the greater the upside breakout. However, maybe we can enjoy a brief end of the world panic again before we mash faces to the upside again?
Just a suggestion.
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It’s all good in Obama’s Hood. The Obama met with The Yellen and said “I want to exit on all time highs. That will be my legacy.” The Yellen said “It will be done but right now is nap time so please leave immediately.”
If Brexit didn’t break the market, nothing except an all-out Chinese disaster will. That’s not out of the cards, but it’s likely not to make headlines until, say, January of next year.
Brexit is a good thing, although I myself did expect the temporary speed bumps in the road to last longer than they did.
Jump off the Ark entirely?
For some reason for the past 5 years I’ve owned a utility mutual fund that well and truly sucked (MMUCX). Sold it last week. I have more cash than I’ve had in years. At this point, there is absolutely nothing I want to buy. Another end of the world panic would be great!
It’s a multi-year move.
The market sees an improved American business climate ahead come 2017 and beyond.
Trump is of course pro-business.
Hillary knows she lives or dies with rising asset prices, it re-elected her husband and kept him in office when he was whore mongering in the Oval Office.
Only big time sovereign defaults will kill
this bull market.
Fly, your writing becomes exponentially more entertaining, as the market reaches highs or inflection points. Keep up the good work.
What happened to roundwego? Maybe his username was a metaphor for his UVXY position circling the drain.