Tuesday, August 21, 2012

Bear Case is Gone.... for now

I find it very difficult not to be a Bear right now -  for reasons like this:
  • Economy / unemployment 
  • Overall mediocre earnings 
  • No QE3 is coming
  • Greece default still looming
  • Fiscal cliff in 2012
Yet the market continues to move higher. and as Jesse Livemore said so succinctly:

"They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side"
In this case though Price is the ultimate arbiter and price tells us the market is going higher.

Here's a three year weekly chart of S&P 500. The Andrews Fork (blue), Channel (black) and trend from the June 4 bottom (green) all point one direction - up. That it broke into the upper half of the Andrews Fork off the June lows was the final decision point for me.

Even the Euro appears to be breaking out of it's consolidation pattern:

When price tells me it's time to sell - I'll listen, But for now it's the Bulls Market

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