| | | Looking back to the early 1990s, one is hard-pressed to find a year where all of the major U.S. equity market indices have logged so few closes below their respective 50DMAs.
I looked closely at the historical records of the MID, RUT, DJI, SPX and NDX last night and analyzed the closes below the respective 50DMAs for each. Out of the 5 indices, none have closed more than 3.75% below their respective 50DMAs this year. The closest brush this year was when the MID closed at 3.66% below its 50DMA back on June 24.
This is the first time that has occurred during the period from 1992 - 2013. The 1992-2012 mean for all 5 indices is typically 13 annual closes less than 3.75% below the 50DMA, and the median is 9. For it not to happen at all this year is unprecedented during the 20+ year span.
Again, I think we owe this oddity to the incredible buoyant power of QE, rather than any great faith in the sickly economic recovery that main street certainly never felt.
Now, what will happen when B$ Ben (and Grandma Yellin) stop pi$$ing their magic flow into the stream? There is so much corruption and crime, that is may not be possible to know. Conventional wisdom suggests that the U.S. equity markets are well beyond ripe for a horrific crash of record proportions, but knowing these ba$tards and crooks, would it surprise anyone to see Dow 25,000 by the spring? Nothing should surprise anyone anymore. -nfg-
Having said that, I am double-long RUT today, but I doubt I will be tomorrow! -g- |
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