V Bottoms

If you look at a daily chart of the last 3 years, since QE 2 was launched, a new pattern has emerged.  No longer do you have back and filling, or consolidation, after a bottom.  The market now just goes full bore into a new up trend.  Look at what happened off the bottom in the end of December 2012, the bottom in June, August, and last week.  They were all liftoff moves, lasting weeks, with hardly any down days.  The market is not giving  investors much of a chance to buy low, before moving higher.  It is about as bullish a market as you can get.

Now we are in the next upmove off the bottom, and this time, there are no negative catalysts on the horizon.  After the June bottom, you had the fear of Fed tapering, after the August bottom, the fear of Fed tapering and the debt ceiling.  Now, there is nothing to scare the chicken littles.  With the deal out of the way, expect a grind higher into 1775 as the skeptics slowly melt away.  The momo names will be the vehicles for outperformance by underperforming funds, that have been too cautious this year. The bubble in tech will continue.  Expect FB, TSLA, NFLX, YELP, P, etc. to go into overdrive over the next few weeks.