Well, all the jokes about my absence from the United States causing the market to fall, and how my return would cause it to rise, seemed to be eerily prescient. The market bottomed literally the moment I left Berlin, and by the time I touched down in San Francisco, the ES was over 30 points higher. Incredible.
I’m the impatient sort who would prefer to see the market fall every day that ends with the letter “Y”, but these BTFD rallies are just part of the game. The important thing, in my opinion, is that so many crucial trendlines have been broken, we are truly in a different market now. These rip-roaring rallies are simply blowing off some excess fear, but the general direction really is “down.” (more…)