Thanks for comments to both of you. I believe up until now we had careful money entering the market, meaning it was mostly calculated risks and being very ready to withdraw. But to virtually everyone's surprise it has defied gravity and rising above all expectations.
So we have just experienced a denial rally - probably the safest rallies to partake in because of the scared and careful money being used. Now my gut feeling is we will enter a phase euphoria where stupid money will enter and fuel the market. From here is where we probably need to be cautious and swift. We could see a rapid rise to say 11,200 on the Dow, but also a more swifter fall back to 10,000 or below.
Make no mistake - this is significant and will draw money into the market from all directions like a sponge. Look out for a real bullish change in sentiment. Look out for big numbers with strong forecasts. Only when the market becomes one eyed should you become suspicious. We're not there yet, but once the stupid money is in then the stupid forecasts and bullish comments will reappear.
