So, that’s it. Everyone KNOWS that nothing can touch this market. It is bullet-proof, Teflon coated, with Central Banks guaranteeing lower prices will not be tolerated.
You’ve been told that all the bad news has been discounted and the markets are climbing the wall of worry as money managers chase performance. The reality is that the market has rather discounted trillions more in free money and has ignored any and all risk. The free money is what is built-in.
Dare I say that your training is now complete.
I firmly believe that the timing of yesterdays European announcement of unlimited bond buying, the Democratic Convention and a new four year market high is a seminal event. Some say we are in breakout mode yet most breakouts fail. And volume is rising.
It has been folly to bet against the overall market in the current low volume, illiquid environment. But the election silly season is upon us and anything could happen.
True, the FED meets next week and after today’s shitty employment number and the bullshit unemployment rate, everyone is again calling for more QE. And the chase is on with the “big beta” stocks moving sharply higher. If I were a degenerate gambler, I would play these insane stocks “fast & furious style”.
But I wouldn’t let my guard down for a second.
And BTW, if the market stays here, Obama wins.