The late-comer bag holders know they’ve chased their late entries into this prolonged rally. These “greater fools” are uneasy, and while some have tightened stops, others have taken out big insurance to hedge their bets. Tomorrow’s lower prices may not be met with the buying that we’ve seen lately. Perhaps there’s no one left to fight the fire once smoke appears. Maybe they’d rather escape the burning building and collect the insurance money instead?
I’m confused. This market is keeping me in suspens.
ReplyDeleteThere are so many bullish signals on the inverse ETF, bearish ones on raw materials, shangaï index, some currencies etc. If you look at gold on a weekly time frame, you will see that the weekly macd is now positive but very weak: will we see a divergence on the way up to the 1000 USD?
Although this market has been accumulating bearish signals, it seems to me that this bullish trend doesn’t want to die. WTI keeps on going higher, a mirror of the optimism of the crowd and the USD is tumbling.
What the crowd is anticipating: The big comeback of the economic growth with a huge inflation?
Stephen,
ReplyDeleteMany thanks for your observations--particularly about the swelling volume in FAZ.
Grant