(10/19/13)
Congratulations to Bernanke and the Momentum Chasing Crowd who
have achieved another milestone in the market. The current rate of change
calculated over a 55 month period is now slightly higher than the previous peak that occurred with the
late 1990's bubble. Furthermore since March of 2009 the
S&P 500 has risen over 1000 points which is similar to what occurred from
1995 to 1999 so the market is definitely in a parabolic move. Finally keep in mind parabolic moves
like we are currently seeing never end well. Hopefully when this latest
parabolic move ends we will not see a repeat of the period from late 1929
through 1932 which followed the parabolic move from 1925 through
1929.
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