Sep

13

Notwithstanding the waste heat being generated by all the friction, the December S&P contract crossed the Century Round 1500 12 times already this morning and continues on up in a continuation of the Great Upward March. Increasing numbers of additional players are returning to the gaming tables at the approach of recent highs, as is typical. The effect is to squeeze down price movement to the grinding march upward of big capital. The last few upswings have had that characteristic. Big accumulation plans taking short breaks, then resuming buying on dips in the four to five day campaigns. The Great Upward March does not appear to be a bear squeeze, which would have a different signature with air gaps up. Do big firms take several days to accumulate huge size? Is it the huge new liquidity pools slowly seeping into the system from the low interest rates, or a pressure differential between stocks and bonds? Think of all the new capital created by the lowering of yields. That kind of money makes equities look like small potatoes. The fear displayed in the media and in chat rooms is a good sign. It's the wall of worry.

Nigel Davies remarks:

I must be missing something, as this looks to me like a trading range.


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