There used to be a saying that markets fall much faster than they rise. Like many things the past year, historical trends such as that truism have been blown out of the water. The S&P 500 is now up 7% in 3 weeks (Russell 2000 doing even better) and continues to steamroll anyone who stands in its way. The 8% correction in late January to mid February? Similary, it took 3 weeks.
Our "ups" now happen as quickly as our "downs"... and yet again (a broken record) with little volume to show for it on the upswing. You can see that on the bars at the bottom of the chart... the only days the liquidity flood can be contained (selloffs) are on heavy volume days. Almost all lighter volume days mean sideways or upside action. The beat goes on, another V shaped - light volume rally to mimic those of 2009. Anyone using traditional technical analysis (use of volume) continues to look the fool.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows