Earnings haven’t impressed. Economic data has been mixed. The Fed even talks openly about withdrawing the mainstay of the rally since 2009: QEn. So, why does the market march ahead as though everything is just great?
We’ve looked at “how.” A handful of ramp jobs* over the past four months has transformed what would otherwise have been a 15% loss into a 2% gain.
- * includes first hour of trading.
There are two fundamental explanations as to “why,” depending on your level of cynicism: (1) the beneficial wealth effect of higher stock prices; or, (2) TPTB wants/needs the money. Either way, there is no longer much attempt being made to disguise the blatant manipulation.
Fortunately for us, these same conditions have existed throughout the past couple of decades. Therefore, we have tools that have been fairly effective at pointing out the obvious and not so obvious paths ahead. We’ll start with the charts for RUT and COMP.
continued for members…
Sorry, this content is for members only.Click here to get access.
Already a member? Login below… |