| You no doubt have heard it said: A market requires buying, a lot of buying, to rise, but it can fall for any reason. Really; I hope you heard that before now because like so much of what passes for perceived wisdom on Wall Street, it is wrong, worthy only of the Annals of Unsubstantiated Musings, and therefore would not be said by me.
As a case in point, I recall a March 1989 conversation with a bond market technician who said, almost in passing, “There is not a lot for sale out there.” Yields have declined ever since then. Similarly, stocks have been able to rise in the face of continued outflows from mutual funds as buyers are willing, and indeed forced, to accumulate them at higher prices. Markets that do not sell off on bad news can rise with only minimal buying interest...............................................Full Article: Source
|