The stock market has rallied over 20%. Everyone thinks that we’re in the midst of the next ‘suckers rally’. I’m even convinced that the market will head up over the next few months. But the Volatility Index (VIX) is still saying ‘buyer beware’.
Is it just me, or does it seem like there isn’t fear out there? I thought at first that I was just disconnected from what’s happening here in my gorgeous Delray Beach office. Maybe that fact that I’m brewing my own coffee in my own home that isn’t “upside down” on mortgage repayments is skewing my version of reality.
It’s over. The bear-market rally of the past two months ended last week.
The amazing nine-week, 100-point rally we’ve seen in the S&P 500 is about to come to an end.
Mr Market seems to have taken in his stride today’s dismal jobs data, sending US stocks towards weekly gains.
Despite the worst monthly cut in US payrolls in five years, US stock market indexes were poised for increases of 3% to 5%, according to Dow Jones Market Watch.
The gains come ahead of next week’s round of earnings estimates.