Value Investors Watch
On March 18 we listed three characteristics of the current stock market. The overriding term that could be applied to this situation is momentum players. Everyone in this market at this point is in it because the momentum points higher.
The risk of this kind of scenario is that everyone leaves the party in a three day plunge, early runners followed by late runners. This market is ignoring China whose market peaked in November and is down 15 percent from that level. The action in Gold and the Dollar is also being ignored.
This is a time of extreme caution.