Financial Times 15/8/16 - The bizarre nature of market signals has barely started. The words of Bachman Turner Overdrive spring to mind: ‘You ain’t seen nothin’ yet’. This is an Alice in Wonderland market where nothing is how it seems. Indeed we are falling foul of the Trades Description Act by even calling this a ‘market’ – it isn’t – it would be better described as a ‘twisted contraption’.
All US indices are making new highs together. The move higher is broadly based. This is something very bullish and rare. It usually accompanies the start of a big move up. higher highs and higher lows is going up. We are going up. Why? We will discover later as the fundamentals follow the price action. The news flow will become more bullish as the price rises.