Sunday, May 05, 2013

Do not fight the Fed and Do not fight the Trend!

It has been almost 2 months since my last post on the Market action.  In my last post on Feb'19, I warned folks to be cautious since the market looked like it was to undergo a correction.  However, it turned out to be a minor pull back of about 3% and the Market has marched higher and hit new highs since then.  There was another correction of about 4% that lasted a week from Apr'11.  The Market remains in an uptrend.  I continue to remain bullish only because I see many stocks  break out to new highs and hold their gains.  The corrections along the way seem to punish the extended stocks and reward stocks breaking out of their bases.  Fed pumping liquidity without any end in sight is the main reason for the Markets continuous march higher.  Do not fight the Fed and Do not fight the trend!

No comments: