I'll start the week off not with a trading item, but an economic item, albeit one that will directly affect trading in a profound way as it unfolds. No, it doesn't matter jack squat for the trades we may do Sunday or Monday. But in the overall, it's just about all that does matter, as far as trading. It's nothing new, just a summary of what is happening.
http://armstrongeconomics.com/2014/12/20/coming-emerging-market-debt-meltdown/
JI
jimkane
Rep: 3,058
Posts: 33,089
Here's what I see:
Here's a quote from the article:
"It is necessary to remember what was being said during the third phase of the previous two bull market cycles.
Low inflation supports higher valuations
Valuation based on forward estimates shows stocks are cheap.
Low interest rates suggests that stocks can go higher.
Nothing can stop this market from going higher.
There is no risk of a recession on the horizon.
Markets always climb a wall of worry.
"This time is different than last time."
This market is not anything like (name your previous correction year.)”
And here we sit, yet once again, and there isn't a single person (okay, outside the 'perma-bears', who are remarkably quiet) who isn't predicting higher prices, some even saying we are headed for a doubler off these levels, or even more. Look at that chart above, scale it in your mind to ES 5000, and tell me how far from that line that would be? Talk about insanity that would make ol' Charlie Manson seem like a bastion of clear thinking, levelheadedness, and rationality...
Source: http://www.zerohedge.com/news/2014-12-24/2015-what-does-cycle-analysis-suggest
Here's a quote from the article:
"It is necessary to remember what was being said during the third phase of the previous two bull market cycles.
Low inflation supports higher valuations
Valuation based on forward estimates shows stocks are cheap.
Low interest rates suggests that stocks can go higher.
Nothing can stop this market from going higher.
There is no risk of a recession on the horizon.
Markets always climb a wall of worry.
"This time is different than last time."
This market is not anything like (name your previous correction year.)”
And here we sit, yet once again, and there isn't a single person (okay, outside the 'perma-bears', who are remarkably quiet) who isn't predicting higher prices, some even saying we are headed for a doubler off these levels, or even more. Look at that chart above, scale it in your mind to ES 5000, and tell me how far from that line that would be? Talk about insanity that would make ol' Charlie Manson seem like a bastion of clear thinking, levelheadedness, and rationality...
Source: http://www.zerohedge.com/news/2014-12-24/2015-what-does-cycle-analysis-suggest
AL
albert
Rep: 99
Posts: 3,094
Originally posted by Duane
Merry Christmas Marcin, all
Merry Christmas.
Al
JI
jimkane
Rep: 3,058
Posts: 33,089
Well, there's something you don't see too often. A little (very little, but some) selling into a Friday close after yet another new all-time high.