|Written by L.A. Little|
|Tuesday, 29 January 2013 06:14|
It's always amazing to see how sentiment can swing 180 degrees from "everything is falling apart" to "the world is great" and to do so in a very short period of time. Are we really that Helter Skelter or is our perception of sentiment incorrect which leads us to believe that these wild swing exist? It seems the latter might be a better explanation. Right now we are reaching one of those extremes where nothing can ever go wrong again. Every piece of news is good, and any and all attempts to actually sell anything is futile. That is when one needs to worry the most.
This morning we have a little weakness. Both Asia and Europe traded mixed overnight. We are on a projection path for 60-70% yearly gains at this pace. I for one do not believe that to be achievable. We will see some selling at some point. What we don't know with certainty is when and we have no idea what the supposed catalyst will be. Of course the latter is easy found since there's always plenty of bad news to go around.
We did see multiple failures in sectors in yesterday's trading of the 2-bar variety. We'll see if that makes a difference in a bullish market mindset where all is good and bad has been vanquished into the annals of human folly.