Generally, a rally will have staying power, technicians say, if, in addition to price movements, it has heavy trading volume and breadth, meaning that several stocks rise for each stock that falls.
Sentiment: POSITIVE
When markets are rallying, cash in the portfolio is a drag on performance, returning about zero.
When herding behaviour among investors ramps up, a stock's or index's growth rate can increase faster than exponentially, leading to more herding. This positive feedback brings the system to a tipping point. About two-thirds of the time, a crash results.
When volume drops off, prices settle down. Volume is the force that turns stocks higher.
One of the frustrating things for people who miss the first rally in a bull market is that they wait for the big correction, and it never comes. The market just keeps climbing and climbing.
Without question, CEOs, executives and employees in companies in the United States and around the world have rallied to face the challenge of a social media marketplace.
Big money is made in the stock market by being on the right side of the major moves. The idea is to get in harmony with the market. It's suicidal to fight trends. They have a higher probability of continuing than not.
In order to rally people, governments need enemies... if they do not have a real enemy, they will invent one in order to mobilize us.
Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.
It doesn't matter if you call it a boom or a bubble. The startup business moves in cycles, and what goes up will eventually come down.
Like a bank run, a decline in stock prices creates its own momentum.