4 thinks I don't like about this market: part 1.

In so far this year, the DJ-30 is up 5.77%, the SP-500 has done in 9.01% and the Nasdaq Comp. has increased 14.71%. This growth can be maintained much longer? The market Then took a break to go up? The market went into a process of correction?

Last week, the market had retreated significantly. Three days of selling erased 18 days worth of S&P-500 gains. Eventually, the market returned to react finished the week and start this week with four consecutive days of gains. Wall Street mean that cultivated his way up?

There are four thinks I do not like the behavior of the market:

Volume
Earnings
External Manipulation
Technical Indicators

Today, I will address the issue of volume.
The whole process of market growth has not accompanied by high volume levels. Backwards, the volumes have been falling almost constantly since 2009. In his book: Technical Analysis Explained, Martin J. Pring explains the significance of this: "Rising prices and falling volume are abnormal and indicate a weak and suspect rally. This type of activity is also associated with a primary bear market environment."

The volume measures the mood of investors. There, for my "always" be "suspicious of the market increased accompanied with low volume. As will, also be suspect a decline in the market, if it comes accompanied by a low volume.

Currently, the major Wall Street indexes are up about 100% from November 2009. In the same period, the volume has fallen about 40%.

        

Every day, I'm more convinced that this market is heavily manipulated. From my point of view, the FED and the ECB have a direct participation in this process. The reason is very simple. For the programs implemented in US and Europe have successfully ( or more likely to succeed), it is essential that the main assets of the economy rise in prices. It is very difficult for households to increase their prices rapidly. So, should make efforts for financial assets (stocks) increase.

Of course this does mean you have to be off the market. What's more, I believe is a golden opportunity to make money in a market "driven" by external sources. What I suggest, is to pay "a lot" of attention to the market. Always place you "stop losses" and try to realize the time  when the market runs out of steam.

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