Discuss Market Comments 02/17/11

New highs - The market tried to fool us on Tuesday getting everyone worried about a pullback, but yesterday we saw the major indices move to new highs yet again. The Dow closed up 61+ points on the day...

Market Commentary for 2/17/11

Current Daily Market Commentary

 

[churejita]

Thanks Tom! I've found your market synopses very helpful. I've been paying attention to the market and my investments for about 6 months. Judging by your comments, it sounds like the market has been acting atypically during that time period. So, my question: how does a "typical" market behave? It seems like this has been a great time to hold S/C funds. What would cause people to sell? At what point would they decide to get back in?

Thanks,

Adrian

 

[tsptalk]

Markets usually do a little more breathing - up and down. The tight rising trading channels like we are seeing now are rare and make investors nervous, causing a little too much bearishness, which fuels the rally.

I would call this 2004-2005 market a more typical bull market. Oversold declinces, support at the moving averages, etc....

Compare that to the last several months of the recent rally...

The top one is more of a trader's market, where the current rally has favored the buy and hold approach.