Doesn't anybody think that all this strength has been caused by the fact it's an election year? Why would the current administration hold any information to stymie the market. Why would Bush leave any good news behind?
Nope...not gonna happen. But stocks don't need a rate cut to continue rallying. In fact a rate cut would bring the party to an end. Stocks prefer the *hope* of a rate cut.
Now, throw into the mix the observation that professional money managers can just "feel" that the market is about to drop but woudn't dare get out of their long positions for fear of missing the next 3%. Given the historic nature of this bull the pain of missing out on further gains is GREATER than the pain of losing an equal amount on a retracement.
Haha, yes their egos get in the way...for some reason people are just incapable of taking profits and sometimes just getting out of the market while you are ahead...if you make an extra 3% profit you most of the time just go lucky
no one thinks anything is going down, every single time I put on cnbc someone is calling for 14k 15k, up 20% by the end of the year etc.
The stuff they show on CNBC is way too funny. I was watching FastMoney yesterday, and they showed a text that NASDAQ needs to go 46% up to break all times high. Last time I checked NASDAQ topped 5000 in 2000. Standing at 2600 today, it looks to me 100% move is required to go to all time highs.
nasdaq has a long, long time before running back to 5000, its going to take an extreme catalyst to move the nasdaq back to 5000. At the time the nasdaq sees 5000 the DOW could easily be at 20,000+
Doesn't this sound suspiciously like the same arguments waiting for the ultimate capitulation before and after 2003 bottom. It's gotta capitulate on large vol before we see the bottom. Now, it's 2007 new high, and it's gotta meltup before we see the top. Let's all get our indicators ready, waiting for that meltup.