So the S+P hit 2,000 and has finally started to push to all-time highs. What was the delay about though?
Where’s the market headed next?
Let’s take a look at that and at the same time debunk some nonsense that’s trying to stop you missing out on the party…
I knew that S+P 2,000 would be an important psychological barrier to overcome, but the sound of champagne corks was muted by that new custom we’ve developed where millions of otherwise intelligent people drop what they’re doing, lose all common sense, and prepare to dissect what the Fed says at its meeting. Surprise, surprise, The Fed said it was going to do at the last Fed meeting…
Anyway, the party is on again before it was so rudely interrupted by that nonsense. But that’s not stopping some people trying to be party-poopers. I’d like to give you a demonstration now of the kind of obstacles you face as investors- it’s called ‘noise’.
You have to understand that manipulation of stocks and markets is a perfectly legal (if done right) and regular practice on Wall Street. Most of the information that mainstream financial media outlets slop out is simply regurgitated press releases sent out from people who have an agenda that usually stems from an attempt to manipulate a stock or a market. The result is a steady stream of BS in the financial world, and the only reason this column is an uncorrupted channel of information is that I have no agenda or obligation to sponsors.
Anyway, here’s a classic (and risible) example I just took from a very well read media outlet- see if you can spot how this information should be taken very suspiciously:
“Brad Lamensdorf of Ranger Equity Bear Fund said a month ago he saw a correction coming. Since then stocks have pushed higher, up nearly 2%… Lamensdorf cautions if we don’t see a 10-20% correction this fall, the upcoming spring and summer time for the market will be horrific.”
This guys runs a BEAR fund. Do you think he might have a vested interest in markets going down when he sent out this press release?!
That guy could have talked you out of the market a month ago and stopped you making gains. Who knows what happens next, but you shouldn’t be influenced by noise like this.
The market is trending up still, hitting new highs, so we have to give it the benefit of the doubt until new evidence emerges. Lots of companies are breaking out to new up-legs. We watch, we continue to buy, and we close our ears to lame-ducks who have an agenda and clearly don’t look at what the charts are saying.
The author has an interest in the securities discussed in this article. Source of charts: stockcharts.com
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