we went from 6500 to 10,200 in a matter of 8 months, it's going to take a heck of a lot of money to get this to 10,500 or 11,000. back when dow was at about 9500, prechtner said the money supply is now 95 percent IN the market and only about 5 percent is left out. so what the heck is going on? I'm feeling any longs above 10,000 dow is gonna be facing massive selling since there just isn't much money left to come in. BUT YET, market keeps going higher and higher.
The employment rate is 89.8%, so there's always fresh money coming into the market. Take me for example, I have at least $3K sitting in my savings account. I could easily deploy that into the market. ... But I can wait.
Most investors have no clue as to why the rise of the dollar/DOW and the concurrent rise of gold would trigger any cause of concern for the larger economy.
It's an interesting time to watch Excess liquidity is driving the market higher But the big money is always looking 6 months out --- So I'm getting curious what will signal the implicit consensus that its time to take the money and run
Is prechtner privvy to M3 figures? The Fed's printing-press has been running 24/7-365 for years on end. I doubt the market contains more than a small percentage of what's been printed in just the last 10-years alone.
no money left to come in? seriously? have you not been watching money flows? A link to a chart of the where the money has been going from the retail side. Once they start chasing then start to worry. http://tr.im/EIgW
Keep in mind that buying and selling are part of what changes prices but changing perceptions of value can do a lot on their own.
According to all the talking heads and many fund managers there is an ABUNDANCE of cash on the "SIDELINES" ready to be put to work. Just like there was plenty of cash on the sidelines when the dow dipped to 13k, then to 12k then 11k and so on. However talk of money on the sidelines is all a fallacy.
Check out the money market funds. They are still significantly higher than usual. <a href="http://www.bloomberg.com/apps/cbuilder?ticker1=MMFA%3AIND">Check the index here</a>.