Stocks Still Poppin’. Gold Still Droppin’!

Four straight weeks of stock market gains without even a minor pullback to retest the support at the 30-day m.a. again. In the 7th straight month of gains since the November low.

It does have a lot of scrambling going on to reverse previous opinions, and a lot of interesting observations.

Financial Times: “The equity market is putting disciplined investment approaches to the test. The adage ‘Don’t chase a rally’ is a core principle in investing. But such advice counts for little at the moment. After spending much of April unable to break through 1,600, the S&P has mainly been a one-way bet in May, rising an additional 4.4% to 1,670. All of which places both private and professional investors in a quandary. . . . In the current momentum driven market we are on the cusp of partying like its 1999, all the while flirting with the danger that when the music stops the consequences of having bought anywhere near the top are likely to be brutal and swift.”(...)
Read the rest of “An overbought condition is not a sell signal. Markets can just become more overbought.” (420 words)