The stock market is clearly detached from economic reality and unmoored from any sensible valuation metric but it just keeps going higher. ¿Por qué.
The market is going up because so many are caught offside betting it’s not going to go up. It also amazes us how so many retrofit their fundamental analysis or perspective of the economy to the price action. No, not everything is awesome and the market is priced for awesome.
Moreover, not a good look if the stock market is close too highs and unemployment is pushing 15 percent. Ya’ know, the rich v. poor thang.
Then there is the social equity of the massive bailouts in such a scenario. Just imagine the politics of that scenario come November?
The rollover will most likely come when shorts get back on side.
We’re happy with cash and gold sitting on our couch dreaming of Waikiki. We’ve experienced too many nut cracking squeezes. Not fun.
As always, we reserve the right to wrong.
Source: Mandi @MPX_Trader
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