Dow up 155 and going higher. Obviously, not many people down there on Wall Street share my pessimism. And they’re all wealthier than I am, so I suppose I should listen. But I won’t – this can’t last, or socialism really does work, after all. Of course, I said the same thing about the Dot.com boom and though I was right in the long run, an awful lot of people made a lot of money while I sat on the sidelines shaking my head.
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from Dennis Gartman a noted stock market commentator/trader – “All of the things we have come to rely upon over thirty + years of watching the stock market here in the US are proving to be worthless. Volume is rising as stocks fall, while volume wanes as prices rise, but that seems not to matter, for stocks keep rising. The P/e multiples are high, but that does not matter; they rise further and
shares move higher. Insider selling swamps insider buying by margins we’ve not seen before, but that matters not a whit; share prices continue to advance.
The Dow Transports have not confirmed the strength in the Dow Industrials, but so what? Shares keep going higher. Earnings that are good are met with massive share weakness; while “misses” to the downside are met by rapid price increases. Thus, either we’ve gone mad, or the market has, but we wash our hands of it and leave it to others wiser, or more courageous, or sillier than we to make sense of it all.”
Essentially he’s saying nothing makes sense for the rise in stocks and usually when nothing makes sense my personal experience says it ends bad. One of the big reasons for stock and commodity strength has been due to the weak US $ thus money is forced into stocks and commodities. Ultimately, it ended bad for other countries when they weakened currency and had overwhelming Govt debt.