In today’s post Chris Ciovacco of Ciovacco Capital gives us some interesting insight into the current market situation and answers the question:
Is the Market Rallying or is it just a “counter-trend” rally?
He also discusses the three Market myths
And he has a great instructional video at the end.
How Is The Bullish 1994 Stock Analogy Holding Up?
What Stock Market Bulls Might Be Overlooking- Video
A growing economy is not necessarily bullish — see for yourself. If a strong economy means a strong stock market, then stocks should have continued higher in 2007 when GDP expanded at 2.7%, unemployment was 4.6% and Consumer confidence was very strong, . They didn’t, instead the Dow fell more than 50% over the next year and a half:
Scared of Stocks? There Are Ways To Monitor Risk
‘Great Rotation’ Includes Safe Money Markets The equity side of Wall Street coined the term great rotation to describe what they hoped would be a mass migration by investors from bonds to stocks. Many investors have not forgotten when the S&P 500 plunged 50%-plus (2007-2009). From the Wall Street Journal: Investors are cashing out of […]
Fed Misstep Opens Weak Economy Door
Ben Had Just Reestablished Order After tapering comments spooked the markets in May, Ben Bernanke spent weeks trying to jawbone the markets back into a calmer state. He was successful for the most part with the S&P 500 gaining 132 points off the June low. Fed Tests Ideas In Print If you want to read […]
Should Stock Investors “Fret Over Economy”? No — See Chart to Understand Why
The idea that the economy leads the stock market is false As the DJIA fell 2% to close below 12,000 on August 2, one theme rang across major financial websites. This CNN headline summarizes it: Stocks sink as investors fret over the economy (Aug. 2) The belief that the economy drives the stock market is […]