This is really a wacky day. The dollar index is actually up 1%. Haven't seen that in awhile. Who are the fools? The buyers or sellers? Tough call.
"Why is the market rallying? " I can answer that, but it is very valuable info. I can't part with it for less than $99.99/month.
It is called investing. People buy stocks with the expectation that company profits will grow benefiting share price. Over time this has proven to work as Stock Markets correct and new leaders emerge pulling indexes eventually to newer highs. [chart the history of the stock market] IBD is really clear on this. When institutions put money into stocks, 3 out of 4 go with the trend. We saw a confirmation of the most recent rally attempt on March 20, 2008 (succeeded by down days on lower volume). Now that end-of-month "window dressing" is over, the Big Boys are once again now putting money back into stocks - discounting the bad news and looking out 6 months or more. All the liquidity/bail-outs have propped this market up long enough. P/E's apparently are still relatively fair and hence we see what is likely (re: IBD's 80% accuracy rating) a new emerging bull trend - within this long-standing bull market. paySen$E LOL Stck_Trdr never met his SPX definition of a "Bear Market". RIMM, GOOG, ISRG, MA etc. will likely participate along with new leaders - again...in a "frothy" late-stage bull market! :eek:
You're right. So few get it. It's not that there are more buyers than sellers. It's that the relative enthusiasm of buyers is stronger than that of the sellers.
I'm short this move. It's definitely an interesting day. We've formed a couple of descending triangles in the spy, and when it looks like we're going lower, we just scream higher. The volume is pretty light as well. And I'm watching the 10-year and the yen, because neither are following this move higher. TRIN seems really low. Just a quick check of the past 20 days, when TRIN gets this low there is usually a sell-off shortly after.