Posted by kdadmin on May 19th, 2015.
With the market at new highs for the first time in two and a half months, the 20/20 Blindsight is in full force. Do not fall victim.
By this I mean that the news pundits are doing whatever they can to rationalize this high and predict new ones. Don’t you believe it. The worst offenders include:
In case you hadn’t noticed, NONE of these are classic indicators of a stronger market, but rather a weaker one. The main rationale is that BECAUSE OF a weak market, the Fed’s won’t raise the interest rate as scheduled, and therefore the stock market will go higher. Fail.
All of this in spite of the fact that Federal Reserve Chairwoman, Janet Yellen, said just last week that she though that equity values were too high. See my last post, The Danger Zone. (By the way, thank you to all who made Tom Cruise references, and sent me hilarious clips.)
Look at this chart, if YOU were the Fed chairperson, would YOU put off raising interest rates?
So… the market is giving us signals of weakness. The chairperson of the organization that controls interest rates thinks the market is too high. Yet those in the 20/20 Blindsight camp seem to think that this will prevent the Fed from raising rates on schedule?
This is utter nonsense.
This is NOT an opportunity for gain, but rather, for slaughter.