Friday, June 15, 2012

IBD says "market in uptrend"..history says "no no"

After the Federal Reserve and Central Bank of England has said that they will step in to provide liquidity in case the Greek economy fails, the market reaction has been very bullish.  However, we have massive overhead resistance and that leaves me dubious of how much more 'sugar' the feds can feed the market.
Last year
  1. We broke down to the 200 day moving average
  2. We rallied back up to the old highs on a few of the indices, while a few indices lagged
  3. Rolled over...and boom...we got crushed until August
The market is tracing out what it did last year!  And by the way, wasn't Greece saved last year? Weren't we told that everything other there was better last year? 

History does have a way of repeating itself.  Will it be different this time?  Haven't we heard that before?

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