No one really knows what's fueling the economy, people just use fundamental arguments such as the zero interest/ fed bond buying, or pull out more Macro "theory" like GDP, unemployment, inflation etc. It's all very well saying that, however there's no volume anymore in the market, volatility's at all times lows, VIX at all times low, retail managed investment at all times lows, there's no correlation anymore between stocks, bonds or commodities either. No one really has a clue what's going on, but everyone has their own "Rational" explanation for it. The only thing we know for sure is that we're in a Bull market, however there's still no such thing as assured direction- unless your an inside trader.
I only day trade, so it's not the greatest market for me at the moment. Sure we're in a bullmarket, but the trend is pathetic- there's no conviction. There's not enough volatility through out the day. Too many days go by when stocks rally up on the open and then just fade away and pretty much go to sleep for the rest of the day. It will work well for swing traders though, just don't waste your time going short at the moment.
