by roscoe00 | Dec 26, 2017 | Wealth | 0 comments
I ate more candy than ever this year but I had an excuse. The stock market made an all time high on Halloween. Now most of the time this wouldn’t be particularly amazing since we have been experiencing this phenomenon for a couple of years now. However, it was Halloween and the amazing part is that it did this despite everyone on the planet saying there’s going to be a bear market. Ok not everyone on the planet but at least two thirds of Wall Street shouldn’t show up for work on Monday because they are stupid. If anyone is managing your money fire them and do it yourself. Trust me throwing darts at the S&P 500 is genius stock picking compared to the stock market advice out there now. The only person you can believe is Warren Buffet, who would have you go into the SPY (the S&P 500 stock) and hibernate for ten years.
In a nutshell what happened is this: Earlier in October the market experience a massive downdraft in a very short period of time. The S&P going from about a high of 2000 and losing about 10% in a matter of a week or two. Now after the long bull run which we have had this should signal a protracted change in direction or at the very least a pause in the upward trend. Or should it? The ensuing snap back to the 2000 level was so violent that it blew out all the resistance levels and now appears to actually be bullish. Dow theorists and Fibonacci targets would have looked for a ceiling somewhere in the early 1900, then resuming the downward trend to take out the 1820 low and make its way further down. However, what has actually happened is amazing. The markets have essentially recovered 100% of their recent losses and the downward trend has been aborted, at least for now.
So this Halloween was quite historical from the perspective that…. this never happens. Enjoy the bull while it is still charging.