Seriously I just want to know what is really going on? Is the govt pumping cash into the mkt before the elections? In all of my years I have never seen anything like this. circa 1999.
Just to put the rally into perspective- The late '90's were far more extreme than this: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1244923>
Yeah the Fed pumped a bunch of money into the economy starting about 5 years ago, rate cuts, remember? It's just now hitting the stock market in a big way after first going through real estate, emerging markets and commodities. Why is everyone so surprised and concerned with this current market? Eventually the liquidity was bound to come back and pump the markets up again. There's no black helicopters or "vast right wing conspiracies" that I know of. Fascinating. Keep climbing that wall of worry I suppose.
There are pull backs to trade almost every day... this is so much like late 1999 - early 2000 that it's hard to believe. Today was no exception: price action gapped up, sold off below daily pivots, crept back up on top of pivots as usual, buy the pivots, let 'em ride, cover for a bunch of ES / ER points... been doing it all week now. Can we please do it again tomorrow? Just buy every dip to key intraday support levels, and hold on. May this extended trend last forever!
You should do a search on market seasonal patterns and this has been occurring each October since 1990 (except to years 1994 and 2000) and it last into mid November. I've mentioned this a lot here at ET over the past several years. It'll most likely happen again next year and months before it...I'll start mentioning it again. Simply, you have seen this before...many times before. You've just either forgotten or labeled it as something else. Mark (a.k.a. NihabaAshi) Japanese Candlestick term