Tuesday, March 05, 2013

Technical forecast: Up, up and away

This is something to see.  As the stock market reaches towards an all-time high, short-term sentiment is becoming more pessimistic.  This is an uncommon but not unknown phenomenon sometimes referred to as "climbing the wall of worry," because the negative sentiment actually helps to maintain the rally.  Money flow has also recently crossed to the bullish side, so if the S&P 500 and Dow 30 really do rise decisively into record territory, then I'll have no choice but to make a bullish bet with my money.

The idea of betting on a continued rally scares the **** out of me, but it's usually best to bet against one's emotions, so that will be my only reassurance.

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