The market continues to yo-yo this week, with early gains getting erased by the closing bell, only to see overnight action bring prices right back up. It's been a week where the wheels are spinning, with large intra-day moves, but the market isn't moving anywhere.
The market continues to soar after the Presidential election. Such a large swift move usually comes with many traders calling for a top, or at least a pull back. And if we've learned anything since the March 2009 lows, it's that any rally can go far further than expectations, and that while a pull back may come at some point, trying to time it is usually a failed endevour. I don't think it will be any different this time around.
With Oil falling last year I posited the possibility that this decline could have some pretty dire consequences. While cheaper gas prices are a boon for consumers, what are the long term consequences of the 50% 7 month collapse in oil prices? Is this another bubble bursting that bears watching and will it lead to a stock market collapse? I think it would be naive not to explore this possibility.