because the markets are foward looking
Were the markets forward looking at the top of the bubble in 2000?
How about after the 2001 January rally?
The 2002 Spring rally?
For that matter were they forward looking at the lows after 911?
Were they forward looking at the lows earlier this year?
Exactly when are the markets forward looking?
What are they seeing here?
How forward do they look?
If they look 12 months forward how the H did we top so high in 2000? How did we fall to QQQ 20? Do they only look two days ahead, or is it two weeks?
Personally I do not think markets look forward at all.
Not now, not ever, not never...
I will define "looking forward" as to what WILL happen.
Right now after this enormous ramp job (much of which was gap ups forcing this market higher, and mlsoft would say direct intervention and to an extent I agree) you are stating the market is "looking forward".
Well there is a "perception" that things will get better but is perception "forward looking"? Yes I know perception is what matters when trading, but perception has nothing to do with looking ahead to see what is going to actually happen.
Right now, stocks are priced beyond any and all rational measures of valuation. Up and down the line. Is the market looking forward to rebuilding the internet? Cause that is what it would take to justify these crappy watered down "beat the stree" earnings. Right now, this does not matter until it does. I do not know when that will be or if that will be forward looking either.
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