SeekingTruth

Dow 6,000, Part II

Fluff, hope, media propaganda, program momentum trading, and a general ignorance of economics and market fundamentals have been the major factors in the recent overly strong and quite unjustified rally.

The power market forces at play are beginning to sense that the retail investor is growing more wary and more reluctant to throw the dice and place more chips on the table.
The power brokers like GS know when a correction pullback will work in their favor and are well prepared for it, desire it , plan for it, and will certainly add to it's strength and acceleration precisely when it is most advantageous to them, and not a moment before.
And so , on and on it goes. The power professionals of today know very well how to play down as well as up and can give the appropriate nudges to assist the transitions at inflection points how and when they wish.
Small investors that do not grasp this and adjust to it , will continue to be disappointed and find that the majority of their long term investments will remain flat to down.
The author does well to point out that , in so many words, that we are in a technical trading market, and without those technical tools, and very good ones necessary at that, your investments are at extreme risk.
This has not always been so, and will not be so at various times in the future ( a phase dependent cyclic phenomena), but it is true right now.