A month ago, the sky was falling. The technical divergences seen in the market were coming home to roost. Growth was slowing. Indicators were falling. Moving averages were snapping. There was fear in the air. And for the first time in a very long time, it looked like the bears might actually be awakening from an extra-long hibernation.

But after a quick dip of about -9 percent and a very exciting joyride to the upside of more than +11 percent (and counting), the tide appears to have turned. No longer is #GrowthSlowing a problem because this just means more QE money printing is to come – and these days, nobody really cares what color the currency is. And more QE, of course, means there is more money in the system that will be looking for a home in a stock or bond market near you. So, in short, it’s all good, right?

If you have detected a wee bit of sarcasm sprinkled into this morning market missive so far, give yourself a gold star. You see, it seems that the central bankers of the world are trying to print their way to global prosperity. And while saving the world from a global banking meltdown in 2008 was definitely a good idea, it seems that the central bankers haven’t figured out that they simply must step away from the printing press at some point.

Cynicism and sarcasm aside, investors need to take note that the current rally might just be for real. You see, nobody REALLY wants to put money to work here. Everybody is looking for a better entry point. And yet, Ms. Market has managed to fool everyone and just march merrily higher. Are we having fun yet?

But there are reasons to be positive here. At least 8 of them by my quick count. So, let’s run through a few of these and see how we feel at the end.

Read the rest of the report…


David Moenning

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David Moenning is Mr. Moenning is President of Heritage Capital Research, a privately owned, investment research firm. Heritage focuses on active risk management and an “own the best and ignore the rest” equity selection strategy.

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Positions in stocks mentioned: none

The opinions and forecasts expressed are those of David Moenning, President of Heritage Capital Management (HCM) and may not actually come to pass. Mr. Moenning’s opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security or Heritage Capital program. No part of this material is intended as an investment recommendation. Neither the information nor any opinion expressed constitutes a solicitation to purchase or sell securities or any of HCM’s programs. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that investment objectives outlined will actually come to pass. Investors should consult an Investment Professional before investing in any investment program. Neither Mr. Moenning or Heritage Capital Management nor any of their employees shall have any liability for any loss sustained by anyone who has relied on the information contained herein. Mr. Moenning and employees of HCM may at times have positions in the securities referred to and may make purchases or sales of these securities while this publication is in circulation. The analysis contained is based on both technical and fundamental research. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.