The Market Is Stronger Than You Think
- Posted by TheArmoTrader
- on September 30th, 2011
He could not be more right. Just look at copper, which I proved in the past has GREAT correlation with the general market. Considering the fact that Copper is below September 2010 levels (when this last bull market run started), we have seen great relative strength in the market.
Also, take a look at the US Dollar. It is the best performer Month to date. One would think the market would be tanking because of this since the opposite was true (dollar tank, market up) for a long time.
Also, with the 30 year bond rallying to all-time highs (I believe), one would think the market would be tanking hard based on the traditional model (Equity outflow, bond inflows). But this is not true, the market, although not showing strength, is just hanging out.
And when you take a look at the Month to Date performers, the three major index futures, the Nasdaq ($NQ_F), S&P ($ES_F), and Dow ($DJ_F) are either “-5%” or better and are part of the top half ”best” performers. Not bad considering the fact that we have seen so much bad news, uncertainty and volatility out of the markets.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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