After a tough first two weeks in April, the markets roared and ripped higher after Apple’s and Bernanke’s recovery last week. And just like that, the pullback was “healthy”, the economy “is just where it should be” and the “Bernanke Bid” is once again in full force.
For the three years of “recovery”, where Obama the Magic President made the stock market double, you have been told to simply “follow the trend”. This year you are told to not listen to the news but simply to pay attention to the “market’s reaction to news” as that is what is important.
With simple domestic stabilization and an overseas’s shit-show, everyone knows all the bad news. Yet we are within a spit of all time market highs. The question become as to what will be the “news” that forces those who have drunk deeply from the kool-aid, to dump equities.
There cannot be a failed auction of any governments paper as Central Banks will not allow it. Overall earnings are continually adjusted so most companies beat expectations. So what can it be? Perhaps financial reality will set in.
The real answer is that there doesn’t need to be a catalyst, there are many in which to choose from. What you already know will be the reason, and that it didn’t matter until it does.
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Yes Sir. I continue to be surprised that things don’t seem to matter in the market till they suddenly do. Poof!
If nothing matters ’til it matters, why do I feel like a deer in the headlights?
Perfect example is how it didn’t seem to matter in the gold miners markets that QE 3 was not going to happen, even though the Fed pretty much was saying that all along. Gold just kept marching upwards until February 29, and suddenly after a Fed speech, everyone suddenly decided that THIS TIME the news mattered…DUH