Take a look at the monthly $SPY chart below:
I create parallel trendline of the recent 2009-2013 rally and lay it on the last two rallies. You can tell the angle of ascending of this current rally is steeper than the last two.
What does that mean to have a steeper angle of ascending? You asked.
Well, it could mean the following theories:
1) There is a lot of money in the system going back into the market
2) There is a lot more money than the prior two rallies going back into the market
3) The universe is always expanding, along with our population; hence there are much more money going back into the market than ever before.
4) With so much money wanting to go back into the market, the speed of ascending of this rally is faster; hence the steeper angle of ascending.
5) Giving my 2 cents economic theories from the above, there may be a lot of pent-up power and money waiting to go back to the market that the two great walls of resistance will be taken out pretty soon. Well, the first one has already been taken out; the second one will be a matter of time now.
There, there. We may have a mother-of-all-rally this year. My earlier panic-attack, I learned with the help of The Fly, has to do with my overweight on biotech speculation. 11 of my 14 positions was in Biotech. No wonder I panic when I saw the $PACB red bar Friday morning.
Btw, this is a monthly $SPY chart, so there will be wiggle in the daily bar; so trade accordingly.
My 2 cents.
Btw: I change my username from zenhunter to TradingMy2cents. Time to reinvent myself…If you enjoy the content at iBankCoin, please follow us on Twitter