OK, that’s it. No more bearish comments from me. From now on, it’s all bull, all the time.
Everything is just fine, and investors shouldn’t have a care in the world. Stocks will go up as the economy improves.
And if things don’t improve, then the Fed will just print enough money to force the markets higher. It’s guaranteed. It has to happen. After all, the good folks at CNBC repeated that theory dozens of times last week.
So I’m packing up my raincoat and putting away the umbrella.Winter has been banished from the financial markets. From now on, it’s all sunshine, swimsuits, and piña coladas.[ad#Google Adsense]Kick off your shoes and come frolic with me along the beach.
Let the gentle waves of the ocean nip at your toes as we dance along the shoreline, thinking only of the riches we’ll receive as the Fed waves its magic wand above the financial markets.
Come on in. The water’s fine!
Oh… I should mention… there is just one itsy bitsy teenie weenie little thing…
This is a 60-minute chart of the S&P 500. As you can see, the index is tracing out a bearish rising-wedge formation, with negative divergence on the MACD momentum indicator. It’s the same pattern I wrote about back on April 15 – the last time I promised to quit with the bearish talk.
Back then, the S&P 500 broke the wedge to the downside and went on to lose 20% in two months. I’m sure we’ll be fine this time, though. Bearish wedges only break to the downside something like 80% of the time. Besides, the Fed is on our side, interest rates are low, and quantitative easing is in full force.
Of course, all that was true back in April, too… and it didn’t stop the market from tanking. But things are different this time. They said so on CNBC.
Stop being such a party pooper and come on in the water.
What’s that? You see dorsal fins poking out through the waves? Oh, don’t worry about that. I’m sure it’s just a school of dolphins playing tag.
Besides, Ben Bernanke and Tim Geithner are lifeguards. What can you possibly be worried about?
Best regards and good trading,
— Jeff Clark[ad#jack p.s.]
Source: The Growth Stock Wire