Another trading session, another record close. This time yesterday I had just put the ribbon on a fabulous article about how the bond market was going to cause a massive correction in stocks. To be fair the Klingon Stock Exchange in Gamma Quadrant 3 doesn't close for another two hours... so there still is a chance....
All kidding aside, it is amazing what a 1%+ rally for the stock market can do. Bonds? What bonds? Like the parabolic move of the US Dollar and the crash of Crude oil, once stabilization occurs everyone forgets about it. Today the bond market stabilized. The pontoons were deployed and the stock market responded with a strong rally.
As I so brilliantly alluded to last night the market is on the cusp, the brink, the precipice, the beginning, the start, the dawning, the kickoff, the embarkation, the inception of a price breakout.
Here is last nights chart:
After today it looks like the big green up arrow has the advantage, but lets not forget, this is 2015 we are talking about. A market that loves to grind away at both bull and bear alike. It's been far easier criticizing the bears than actually trading for upside. The bears deserve far more credit than the Central Banks. In the most historic bull market of our lifetime, the bears are still around, if not thriving. What look like little crumbs, little nibblets of red stocks to us mere mortals, are actually a field of dreams to these market 'Gods'. A plethora of shorting opportunities that only the perma-bear can profit from. If I was forced to short this market I'd already be dangling from a noose. A paper one of course, made out of all the paper trades, and paper charts with big red down arrows that looks so promising for about a minute, that I had made.
... Mr Bear... I salute you.
Out of all the years since the lows in March 2009, 2015, despite its move to new record highs, has been one of the more frustrating for all parties. It's been a grind. A mudslinger. And for the last few months - outright consolidation.
Is the break finally upon us? We are close. Heading into 2015 my magic ball has been pretty darn accurate. Bonds would rally to record highs. The US Dollar Index would soar to triple digits. I also said the $SPY 212.97 paint of late last year would get surpassed. After today's trading session its abundantly clear that the moment of stock market epiphany is swiftly approaching. That parabolia (I made that up) extracasticy (and that one too) of exhilarating proportions. What am I talking about?
To answer that I will repeat the words of the wisest man I have ever known:
As I so brilliantly alluded to last night the market is on the cusp, the brink, the precipice, the beginning, the start, the dawning, the kickoff, the embarkation, the inception of a price breakout.