The Stock Market’s New Normal: A Wall of Worry.
While I realize that fundamentals are important to investment success I also appreciate the relevance of technical analysis in gauging investor sentiment and in timing entry and exit points.
From the technical point of view the market is in a strong bull trend and would appear to be poised to reach new highs. However, when I research into the fundamental reason behind this strength I find little to support it other than the actions of the FED. To explain what I mean I attach 5 charts from two different sources. They outline real underlying weakness. Thus while I am fully invested in equities at the moment I have hard sell stops in place and I am prepared to quickly and solidly go short should my key technical positions break-down on high volume.
full report in PDF form Here: Wealthbuilder Market Brief 6th. March 2014