The markets have complacently pushed higher despite seemingly bland economic numbers, April is shaping up to be another grind higher with declining volume the theme. SPY 120 was a number we did not think anyone would see for quite some time, though today we saw, briefly, prints above 120 before the markets retreated ahead of AA’s (Alcoa) numbers.
AA missed their sales number though narrowed their loss. The market blipped during during last earning season, only to be bought right back up after the dust settled. ie low volume = buy buy buy.
A bit of profit taking up around these resistance levels is nothing but healthy, i do believe we will see 1200 before June. Traders are slowly becoming more understanding of our current market, the trade is long. Buy the morning, sell the afternoon. This does not sit well with me from a contrarian standpoint, though contarians have been very wrong about this “impossible” rally. I will admit i for one was a pessimist the first 45% or so, but eventually you gotta get on the right side of the trade. If rates remain low, REAL, FRESH retail cash will start flowing back into the market once again, we are seeing tastes of it in the likes of FRE, AIG, ABK, SIRI etc. Once joe 6 pack gets words the stock market is where its at the market could pull a 1999-2000.