We are in the final month of what has been a very impressive year for the stock market ... look at the those gains --->>>>
- Nasdaq Composite +30.6% YTD
- S&P 500 +25.3% YTD
- Russell 2000 +20.5% YTD
- Dow Jones Industrial Average +20.3% YTD
It was all supposed to be one giant bull trap... right? I continue to view this market through glasses tinted with unprecedented Central Bank action.
Every reason to sell stocks has really been a reason to buy. As weakness = more assistance for the Central Banks. In a world where participation trophies are given just for showing up, its no wonder these markets will continue to get support whenever downside rears its ugly head.
And yes downside will return. Make no mistake about it. And it will get ugly. And the bears will be out pounding their chests. Being wrong every day for 10+ year has done little to take the blind arrogance away from those calling for the imminent collapse of the equity market.
However the trend remains up.
Its is no coincidence the market reversed course late last year as expectations for a more dovish FED grew. The market knew rate cuts were coming. The market knew more QE was coming. And guess what... price action knew this was coming as well. Amazing how that works. The price action of the market is all knowing, despite what you see and hear from those who have been wrong about price action since 2009.
When buying and selling something price is all that matters. And when buying and selling stocks, knowing where the price is headed is paramount to success.
So while this market is nearing another pull back. Price action, and the overall trend remains to the upside, with recent price action and record highs pointing to economic expansion into 2020.
We now sit on one of the longest expansions ever.
and if you want to call this record, historic stock market rally irrational... then guess what? And you've heard this many times before. This market can remain irrational far longer than you can remain solvent.