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This is a big question going around some of my circles these days. I’ve heard valid arguments from both sides. The bulls are convinced that any dip, or even pause, is an opportunity to just buy US Stocks. And the bears are convinced (and have been) that the rally can’t keep going like this without correcting first. The last few weeks of trading have caused both of these camps to question their conviction. At least that’s how it appears from where I’m sitting.

Blogoland is rife with opinions, charts, studies, etc. While inflation continues from the Central Banks, even if we have Septaper, stocks will continue higher as they remain an imperfect inflation hedge. The ride will be bumpy. That is its nature.

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Markets can do crazy things. While technicals allow you to plan a trade and manage that risk, they are not predictive, market internals are useful, but again, not predictive. Bull runs, bear runs, can go much farther than most ever believe. The trick is to somehow remain with the market through the extremes. Easier said than done.

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