It seems no amount of bad news will hold the market down, which only proves that when a crowd want to go one way, it's better to go with the flow or get trampled by the throng. Going with the flow does not mean you have to be the leader only means let the momentum carry you.
What momentum you ask? Well I ask the same myself right now, as the momentum does seem to be lacking at times, yet invisible at times it may be, it's carrying stocks upward.
What I see is purely news driven, upgrade/target driven and perhaps driven by lack of anything else to do in these summer doldrum days.
When playing the markets daily, it matters not. When playing the markets for the longer term, it may matter a lot. The valuations matter. Not just the valuations by analysts, but real valuations of companies, which I tend to check here and there, I am beginning to wonder. Imagine when the DOW hits 13-14K do you really see the prices rise, which they must if we are headed back up to those levels, to keep with the valuations to the levels 25-50% higher? It may, due to inflation, but that is not valuation; it's merely imagination.
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The Daily Pick - Morning Note
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