We hit $SPX 1500 today without much fanfare. No big rip, no big volume thrust, so nothing really to shake any shorts that are left in this market. No massive buy stops were furiously set off as we hit the big optical number that is 1500. $AAPL was massacred and $GOOG added to gains. The transports ($IYT) made more highs (extended), and that put Dow Theory groupies in bull market heaven. $IBM was flat as it digested yesterday’s big move. $NFLX was UP 42%. Body bags were needed for NFLX shorts and AAPL longs. This is so far from a widows and orphans tape. If you lean the wrong way, you will need a tourniquet and a paramedic. If you have the balls to play earnings on these names, you’re a better man than me. Better odds at roulette.
I was looking at some of the S&P targets by the “pros” today, and I saw nary a target above 1600. So am I supposed to get excited for a mere one hundred handle move over the next forty nine weeks? I think 1650-1675 will be more like it. The global “serial easers and printers” have left the markets no choice but to explode to silly willy levels. You may not realize it, but the next bubble has begun, right under all of our noses. Bubbles start in a stealth fashion until people realize they have made tons of easy money, too much money. Those that were left behind (retail), then wants that easy money, and the bubble pops. We could have two years of this. Bull markets always go up in spite of everyone’s doubts.
I write this at 1500 and we may be ready for a correction, so spare the emails if we go temporarily nosedive. Dips need to be bought. Fighting this tape will be like fighting the judge over a parking ticket. You will always lose.
Economics don’t matter. Don’t believe me? See the ETF’s of these countries where the economies are on life support:
$EWQ $EWP $EWG $EWI $EWK $EWW
Never fight the Global Fed. Bubbles are awesome.
Sign up for a free trial here for daily set ups.