For a short week last week, the long in the tooth bull market sure showed its “agelessness.”
Too bad there wasn’t any meaningful volume of capital inflows to warrant the records that were broken.
Then again, it was a holiday shortened week.
Still, as old as this bull is, the only thing that’s not killing it is the Federal Reserve’s mouth to mouth resuscitation efforts and the fact that it’s the MOST HATED and MISTRUSTED bull market in HISTORY.
And that means, what’s moving markets higher is all the sidelined money, like the money that didn’t come in last week, or the month before, or the quarter before.
It’s all there on the sidelines and waiting to come in or waiting to say “I told you so!”
After Newest Low Volume Records, Expect More Upside
But it hasn’t. And it may not.
Some reckon the total sidelined capital is a trillion dollars, but by my reckoning, it’s not quite that much, but there’s at least $500 billion sitting in liquid funds.
Either way all that money is waiting for something to do.
The psychology behind that money will increasingly be fear of missing out aka FOMO.
Especially if we keep “drifting” higher on low volume.
My betting is that we’ve got another leg up to go, maybe 10%-15%.
That’s all because of the piles and piles of sidelined money.
But that’s not the only stockpile waiting around collecting dust.
Thanks to an IRS mandate, you are actually entitled to collect hefty “rent checks” from the government.
“Federal Rent Checks” offer a recipe for effortless income, month after month, year after year.
If you are over 18 and a U.S. taxpayer, you are qualified to take advantage of this opportunity.
There are no restrictions. And you can set up this income stream opportunity up in as little as 10 minutes.
So, play it again Sam, from the long side.
Unless, that is, we see a steep selloff on heavy volume that breaks some serious support levels.
Stay tuned, we’re going to see how we trade this week and then we’ll know exactly where those support levels will be.
I’ll have all of them for you next Monday.