Surviving a Top That Has Become Surreal

Traders looking to survive the deadly tedium of this market ought not to begin or end their day with a strong opinion. Although bears who smell a nasty top have ample reason to bet the ‘don’t pass’ line whenever the moment feels right, they should hold no illusions that a bull market now in its eighth year is going to roll over and die simply because some formerly reliable technical indicators say it’s time. Nor with a world endlessly awash in funny money can we count on lousy earnings to deliver the coup de grace.  It should be clear to everyone by now that the hacks, scoundrels, cheats and mountebanks who are paid princely sums to throw Other People’s Money at stocks are not swayed by the ominous, downward drift of corporate earnings.  Yes, it is outrageous that despite this the broad averages sit within a three-day rally of all-time highs.  We disregard this development at our peril, but that doesn’t mean Mr. Market cannot continue to thumb his nose at reality for as long as it suits his cruel designs.

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