I have been trading full time for 20 years and when I see portfolios rocket it means normally one of two things. We are getting near the market highs or we are only getting started.
The chart above showing the eBook systems performance since it bought back into the market after the Dec 18 lows. The system rose 5% last week followed by another 0.5% the following Monday (15th April 19).
So are we just getting started or is Armageddon around the corner like many seem to think? Regular readers will know my Zen philosophy of "we don't know" and attempting to predict can just send us into states of frustration and fear, emotions we need to recognise but not let hinder good decision making.
Those that had the courage to cast aside fear and doubt and follow a method of probability would be feeling pretty good right now, because the eBook method signalled to buy over 2 months ago, others it seems are just catching on. However the continual negative sentiment of many does not make it easy for us to stick to our plan. Below is an argument to support the theory there is more to come in this bull market.
Taking a step back from the short term action and looking at a monthly chart of the Aussie top 500 shows a steady uptrend with an equally steady volume line. Buyers still seem to be in control, that means higher prices. I have also asked the question (as I have since 2013) did this bull market start in 2009 and is it really 10 years old? I dont think so which means we could easily have more to come, and it could well be a rapid more, like the years 1997 to 2000 and 2006 to 2008.
Also when you consider the ASX500 is dominated by banks, banks that have been going sideways to down, it's an even more impressive performance indicating other stocks and sectors are flying. An example is the Tech sector below.
We can all see clearly now the lows in December 18 was a correction, not the bear market so many thought, so what do we have now? A very strong bull with lots of buyers, higher prices seems more probable than not.
Trading Seminar May 19th Sydney
There are still seats left for this event featuring the system mentioned above, click below for details of what, where and when.