i guess i was a tad negative when i posted this post last week. the american and european markets going straight up like they have got me going. in hindsight what i said made it look like i think america is finished. i dont think this is the case just yet. if it was the case the world as we know it will change dramatically and quickly. financial markets included. i do believe this will happen one day but maybe not in the immediate future. the coming correction will be more than the 4-5% correction everyone is predicting. thats the way these traders who now run the markets work,they push things to extreme highs and then they push things to extreme lows. there is always an excuse of course and the excuse may well be the american debt levels. but when i hear things like this on skybusiness this morning, it does make you worry. on sky business. an american trader just did an excellent piece on the american stock market rally. if its on their site go watch it. best coverage ive heard to date. ill roughly quote what he said. everytime there is a dip in the market automatic etfs get triggered and the market rallies back up. short term traders with lots of money are constantly rotating there trades from airlines one week to miners the next. this rotation of money is also causing the market to keep going up. have to watch the piece to get how this works. and also this rally is on very light volume. the general idea is that short term traders with lots of money will not let this market go down. they are using etfs and other automatic trading strategies to keep this market up. albeit the big guys have also been getting in so they dont miss out i guess.
