Tuesday, August 26, 2014

Stock market rally will not end anytime soon

We see nothing that can or should de-rail the protracted global bull market. It will end when it ends and it will end when trends lines are broken; it will end when a previous rally high fails to be taken out and a previous interim low is, instead, taken out to the downside.
Dennis Gartman

It will end when the last of the large number of very publicly bearish market watchers finally gives in, upends his/her bearish intuitions and turns, finally, bullish. 

It will end with the funds on the sidelines with large sums of cash on hand rather than investments made put all of those cash hoards to work, chasing performance. 

It will end in euphoria as all great bull markets end and at the moment there is nothing even modestly resembling euphoria in the markets. Rather there is disbelief in the integrity of the bull trend, with that disbelief fired by well- argued theory or theories that are intellectually brilliant, that make imminent good sense, that are readily embraced but which have been proven horribly wrong. 

When those theories are finally abandoned, the bull market shall end... and not a moment before.

We remain “pleasantly” long of the equities market, the middle path of our three possible paths that one can adopt in a bull market: Aggressively bullish; pleasantly bullish or neutral.


via Business Insider www.businessinsider.com/gartman-were-having-a-market-melt-up-2014-8