Headline writers across the financial media all have a laundry list of why this time is different for NASDAQ 5K. No doubt, this time is very different in many ways and there is just no denying it. It's so different that it probably doesn't even cross the minds of most in the industry until somebody throws out this random round number.
At the same time, there still are a host of dog shit companies recently public that have been bid up in the venture capital boom. Many are completely un-ownable. This market latte is half coffee + half froth.
The tenor of these headlines writers is that all is well. It's the type of tone we hear when a lot of people are comfortably long stocks. This among other factors included in my weekly letter lead me to believe the market is about to rock the boat a little bit and at-least shake some bulls off.
One other piece of anecdotal evidence that is a short term cause of concern is Dow Theory. My buddy Andy Nyquist notes how the transports have failed to confirm the breakout in the industrials. It's always hard to tell if it's too early to mention this divergence, but in 2014 the blogosphere would've been all over it as a hot button issue. As far as I can tell, the crowd is largely ignoring it.
Trade 'em well!
Thanks for reading!
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