The market has had a very nice few days. I don't see any type of fundamental reason why this should happen. I have written quite a few times that a big rally coming out of nowhere for no reason at all was always a possibility. I don't know if that is what we have here or not. If this sticks I will turn out to be wrong in my idea but client accounts are still capturing the effect.
This is also something I have written about many times. It does not benefit my clients to have too much riding on one probability.
I would be thrilled to be wrong in this direction, if that is how it turns out. I think that is yet to be seen, but thrilled nonetheless.
Wikinvest Wire
1 comments:
You are in this market and making money; it beats getting poked in the eye!
I believe the specific reason the move is happening is that the hedge fund "frogs are getting boiled". Many are caught with incompete arbitrages. Each day the heat goes up a little more. The record level of short sales are a part of the incomplete arbs. The forced buyback of those facing margin calls could make this market explosive.
By the way, thank you for the recent mention. As a hard headed bull, I disagree with other bloggers often. I find that I disagree with you less often than most (how's that for a back handed compliment). Indications are that other bloggers are missing most of this wonderful move, I know you must be enjoying some nice gains today.
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