This new upleg in the market which began in mid - Oct. has so far beaten the long term odds
against holding a spike bottom without a retest and has traveled up to new high ground. The
rally has started to lose some momentum but is still on an unsustainable trajectory. It is also pretty
strongly overbought on a short term basis. Despite the roll over in short term price momentum,
trader profit taking has obviously remained in abeyance and reflects the high expectations players
have that the year will finish strongly. SPX Daily
Most fund managers have underperformed the broad market this year and this sharp rally has
prompted stragglers to extend long lest they fall further behind in the relative performance derby.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!