The last two weeks in the stock market has been absolutely perplexing. Immediately after making a lower-low, the market reverses course and makes a new high – that doesn’t happen very often, and frankly, I don’t even know how to disect that or anything else that seems to be going on in the market right now. I honestly think that the every company in the S&P 500 could announce that they were going under, and yet the bulls would still find reason to rally.
The only strategy in this Cramer.gov bubble, which is what we are in right now, is buy everything you can get your hands on because Uncle Sam tells us so. Forget unemployment being at ridiculous highs, and forget we are spending ourselves into oblivion (literally), forget industry after industry seems to be getting gobbled up by Obama and his goons – Jim Cramer said “Booyah” last night on his show, so we much buy, buy, buy!
Okay – I just had to get that off my shoulders. I’m fine – really! By the way – check out the article that was published on Slope of Hope – it is entitled “Aim Small, Miss Small”. I highly recommend this website as it provides a lot of solid advice, humor and perspective for traders, that you aren’t likely to find anywhere else. Big thanks to Tim Knight for allowing me to be a guest writer on his blog.
Here’s the NASDAQ and S&P charts…