Why are Stocks Moving?

Printing massive amounts of money, or in the Fed’s case refusing to tighten?

As obvious as the tech crash in 2000 or the housing bubble… are bells ringing in your ears why stocks are moving. We are trend followers and we all know that stocks rally due to liquidity… we saw what happened when the FED raised interest rates ever so slightly…

The charts of the major averages are looking better as more retake their line of demarcation… 200 day moving average. However the problem is that most of the gains are coming from defensive names and beaten down stocks or even Gold shares. The are more breakouts showing up, but they are not producing worthwhile gains. Most are stalling after they break out. Even early buys are not doing much.

So what do you do?

Simple solution….try to trade ETFs on the indexes… or even leveraged ones… this is your decision as it has to be applicable to your rules and risk…

This is one of the most difficult market to make progress in that I have ever seen as most or all of the rules that have worked for decades are being distorted by political comments or central bank shenanigans.