Buying Back the Rally?

The Wall Street Journal reports the a record amount of cash is being pulled out of Index Mutual Funds and ETF’s, as well as individual stocks. Yet the rally continues. What is driving this? Corporate Stock Buybacks. That is fine, but that well is not bottomless.

See this week’s video technical analysis of the Index charts and what to watch for in the upcoming week.

What do you think? “Time to bail” or “Ride it to new highs?”

Be sure to respond and let me know.

Dean

2 Comments

  • Mike Novak

    Reply Reply December 9, 2019

    Hi Dean…Thank you for posting the WSJ article. 2019 drawdown is about double 2008…yikes. A comparison of the monthly 2008 vs 2019 numbers would be nice to see. Impeachment, regional conflicts, Brexit, and China trade are all concerns and grab everyone’s attention…but the trigger may be some quirky unforeseen event. Might be time to buy some insurance and balance the bull vs bear trades more toward a delta neutral position…it may end up being a “wasted” trade but I’ll sleep a lot better.

    Regards..Mike Novak

  • Scott

    Reply Reply December 27, 2019

    Bail out of index funds and reposition into stocks especially small caps and microcaps.

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