Thursday, May 29, 2014

U.S Stock Market - Only Momentum....

U.S stock market goes up and nothing is able to stop it.
But the funny thing is that there seems to be nothing more than momentum. Sentiment, less quantitative easing and market breadth have a negative impact on stocks. At least they had...but not these days. I do not raise the valuation problem at the moment but...well, after more than five years of the bull market in stocks it is rather a hard thing to find cheap stocks (apart from the traditionally battered sectors as e.g. precious metals or coal mining).

Let us look at these charts:

Sentiment - optimism is easing but the market does not bother.....:

FED action - previously, when FED was cutting bonds purchases, stocks were correcting...but not these days:

Market breadth - less and less stocks are pushing market higher but...who cares about this serious danger?


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