US Stock Market All Time High

alltimehigh

The US stock market has made all time high prices two weeks in a row.

This is at a time when if you recall earlier in the year we had some highly respected individuals calling for a severe market crash. One even predicted Dow 3,300 in 2013 (that has since been revised to the year 2013 and we will see why in a minute).

All of this upside momentum is no doubt the positive consequences of quantitative easing – the printing of US dollars by the Federal Reserve. Whether we agree or not there is a saying by the professional traders “don’t fight the Fed.”

Additional monies in the market make it easy for business to borrow to grow their business, to hire employees who then pay taxes and buy homes and go on holiday.
Can the market continue its uptrend?

One argument is that the holders of Bonds now realize the risk in being in bonds.

Remember when (not if) interest rates rise then the bonds can see a large drop.

So where do the bond traders place their money and get some sort of a return — at the local bank? How about the stock market!

Or might we be getting ready to see market prices consolidate?

Even a 50% consolidation would be a good thing for this market!

Remember that as Smart Traders we may be aware of what is being said about the market however we only trade in the direction that our style of trading dictates.

How cool is that! That way we will find ourselves trading in the highest probability direction – always.

On a side-note, here are my beloved members graduated from the April 2013 batch.

Singapore April 2013 Graduates

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Malaysia April 2013 Graduates

 

 

 

 

 

To your continued trading knowledge and success!