Anomalies
I heard on the radio this morning that the last time the Dow had such an extended rally of up, up, up (what is it, 21 out of 24 days?) was when Rock Around the Clock was popular, 52 years ago in 1955. Oh, BTW, isn’t it true that because of that song, since the 1950s greater than 90% of Americans mispronounce the name of Halley’s Comet? (Sir Edmund’s last name is correctly pronounced the same as Halle Berry’s first name).
(Update: On the 1000 EST outro, CNBC noted this song too. Someone there must listen to NPR as well.)
And this type of extension happens about as often as that comet comes around. Is the rubber band about sixfold overdue to snap back? How many times has the S&P closed below its 10-day moving average in the last month? Are the people furiously shorting this rally brilliant or are they complete idiots? Testicles the size of melons or marbles missing upstairs?
When assumptions based on historical “evidence” utterly fail (the market “never” does this and home prices “never” go down), then what? Crazy to short against such strength? Even crazier to buy into such overbought-ness?
LP, in response to that last comment, you’re exactly right. I’ve had to work 15 out of the last 17 days, and the other two I was driving my three princesses (and one of their ICK! boyfriends) to Dallas for two fun, painful days at Six Flags. A few rounds on rides like The Titan give the old man a 3-day backache. Today is my first “real” day off, and I’m hoping to get in a daytrade or two, between cups of coffee and ibuprofen.