The Illusion Of Safety
The market looks strong this week. Is it time to throw caution to the wind and dive back in?
It certainly was an optimistic way to start the week: the market ripped out of the gate on Monday, shaking off fears about a Credit Suisse implosion that were festering over the weekend, and Tuesday it followed through at an aggressive, blistering pace, with Zero Hedge pointing out that the NYSE TICK indictor, +2100 at the cash open (and more than 2x the well-understood “overbought” sentiment of +1000), had posted its second highest number in history.
When all was said and done by Tuesday night the Dow had gained more than 1500 points in the course of just two trading sessions, closing Tuesday back over 30,000 after ending Friday last week with a 28,000 handle.
Alas, the worst is finally behind us and the bottom is finally in…or is it?