You have to understand how the market works --- FEAR rules. But the fear of missing rallies RULES fear of losing money.
Right now, if you look at the mutual fund inflows via TrimTabs, money is pouring back into the market. What appears to be happening is that last fall everyone was freaking out and pulling out money. Today they are back to feeling everything is settling down and driving that money back.
However, if I've learned anything over the years, it's that the market has one purpose - to steal your money anyway it can. Unless you hold for a long time, fo-get-abowed-it.
That's why 85%+ of 'traders' lose. Elidias has an eventual projection of the final low in the DOW at 4000 and SPX with a '4' in front of it. He's been the most right since this all began. Moe has had him on his show many times over the years. I even hear Moe specifically talk about Elidias projections.
You have to understand that now, market seasonality starts to take over and that isn't good for the tech stocks and overall averages. Now biotech/drugs/healthcare start to move. That's why I'm in EBS and BLUD. On Tuesday I'll give out the exact dates to start really piling into those calls. July is going to be a big month for them. Retail stocks like ARO, COH, and LTD all start to really fall the end of this month.
Also oil stocks start to fall. XOM is a big loser from June to July.
But right now the market is in catch up mode. Fully or even overvalued. So, there is a big chance we start to fall big soon. But not like the Fall. SPX 800 is the target. If the market pulls back to that level, it should see a big move up off it. However, if broken, new lows for sure.
But we're a long way from that. All this new money coming in could still be enough to push it higher, completely screwing all the technical guys. But when it runs out, watch out below. The volume has been anemic on the last 1000 points in the DOW which backs up the mutual fund buying and not panic to buy. They are slowly adding, not chasing. So, could get interesting fast.
