By: Steve Smith
The stock market continues to power to consecutive new highs; as measured by the “SPDR 500 ETF (SPY)” already up some 6.5% for the first six weeks of the year. And, despite a variety of events, from the Iran/Iraq missile issue to the current Coronavirus, that could have provided valid reasons for a significant market decline, nothing seems to be able to derail this market.
In fact, that rally has been scarily controlled and linear, with 87% of the past 70 trading posting gains. It’s as if a flying saucer is hovering above, shining a beam drawing in dollars and driving prices inexorably higher.
It’s probably no coincidence the lift-off began in earnest just after February engaged a new round, pumping liquidity into the market on Sep 18, 2019. They can claim ‘it’s not QE.’ But, it amounted to some $120 billion in funds made available via the repo market on a daily basis.
That was the… Continue reading at StockNews.com