On the PLUS side for market advance, the market knows corporate profits are missing and getting pinched. But yet, the stock prices had not moved down severely.
There is the thought that all financial institutions, governments, and corporations all want stocks to go up. Financial institutions are employing sophisticated trading platforms to 'manage' the market, such as High Frequency Trading. The government changes laws to make corporations look better, such as changing accounting rules in place since the great depression. Corporations continue to innovate to move liabilities to off-book accounting mechanisms.
So while I am skeptical of the market making new highs, doesn't mean it wont. Today is a good entry point if your mildly optimistic, with a stop-loss if the market closes below SPX 1395.
Futures are pointing up. US presidential election home stretch is upon us. The USD may resume it's decline, bolstering stocks until the effects take another bite out of companies.
Image below. I will buy some GDX, GDXJ today on advice of Gary of the Smart money tracker, but not to the same degree as he may. Also lighten on HDGE. Good luck.
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