A Common Sense Approach To Figuring Out What Comes Next
Jani Ziedins | Jun 07, 2021 12:04AM ET
The S&P 500 added 0.61% last week and it continues hovering near record highs despite the relentless inflation warnings.
The S&P 500 added 0.61% last week and it continues hovering near record highs despite the relentless inflation warnings.
As I’ve been telling readers all along, if the market cared about these things, it would have crashed by now. Everyone has heard these warnings and those that feared them sold a long time ago. Anyone still holding stocks acknowledges these risks and is unlikely to be spooked by recycling the same old headlines.
This stubborn resilience confirms this is a strong marker, not a weak one. As common sense as this sounds, way too many traders fail to grasp the simple concept that a market that refuses to go down will eventually go up.
Bears calling for the “inevitable” breakdown will need to wait a while longer. They’ve been predicting a crash for over a year now, what’s a few more months?
The path of least resistance remains higher. Until further notice, keep holding for higher prices and raising our trailing stops.
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