I’ll shown you several reasons for why the stock market is going higher. The commercial traders in the latest COT reports are super bullish. The intermediate trend line has to be broken in order to confirm an intermediate cycle low. It’s way too late in the 7-year cycle, and the cycle is far too right translated for this to be the beginning of an extended bear market.
And now I’ll give you another one. Despite a 300 point rally retail traders, aka Dumb Money, are still buying puts hand over fist. Doing the opposite of this group is almost always a winning strategy. They are emotional, they lack inside information, and they are always on the wrong side of the market at turning points.
The fact that they are still buying puts bodes well for stocks going forward. These clueless traders have to be fleeced and start buying calls before this rally will top. At the current rate it may be awhile before that happens.
Apparently these traders are having flashbacks to 2008. Folks, it’s not 2008. The world has changed. We aren’t going to make that mistake again.