|Most hated bull market ever|
If this is the most-hated bull market ever, as has been suggested, maybe there's good reason for it.
While the rally this year looks good on paper—as any 15 percent S&P 500 gain by early July would—it has come on the backs of some of the ugliest internals you could imagine.
Just look at the qualities the biggest gainers share: Low price-to-earnings ratios, zero dividend yields, high short interest and lowest analyst ratings.
I can see lots of bloggers, and other news and analysis telling their readers that this market is bearish, and we are about to crash hard. I have been hearing that for many months now.
The sad news for these people is that they are not looking at the market hard enough. When you have a look at the chart below you see that we have been in a bull market for many months now, and there is no letting up. I have said it before and will say it again, when you see a chart go from teh bottom left to the top right, that is NOT A BEARISH CHART at all.
Below is the SPX weekly charts. There is nothing bearish about this chart, and every time there is a major dip on the market, it is just a mere buying opportunity. Since the end of 2011, you can see that we have been travelling up in a upwards channel.
In no way am I saying we wont see a nice sell off or a larger correction, however I am saying that this chart is more likely to up over time, and for us to see higher prices down the track. Especially in 2013.
Now I could be wrong and we could see a sell off right back down to the 1050 level, however that would be the very low probability is all.
|Most Hated Bull Market Ever|
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