Market Commentary 8-23-09
It feels and looks like stocks are going to start riding a momentum wave although trading volume is probably going to be light as summer vacations are wrapping up in the next two weeks.
As mentioned on Thursday night’s report is that the market is ignoring bad news right now and this is something to monitor if and when investors are hyper-focused on good or bad economic news.
The comments in recent weeks of that describe the market looking for “green shoots” (referring to a new plant growing out of the ground) of potential signs of economic recovery has now matured past that point.
Investors seem to be convinced that the worst is behind us after so much brainwashing by government officials, politicians and some early forecasters trying to make a name for themselves by making a famous call.
The important thing to watch is if the market acts like it is believing those talking points and right now it does. Any selling that occurs in coming weeks will probably be the type of correction that investors will buy into and that will give us another excellent swing trade opportunity on the long side.