The bull market turned eight years old this week, and I know some folks who are having a wicked, blowout birthday party.
My advice, in the words of the late, great Stevie Ray Vaughan, is "if the house is a rockin' don't bother knockin', come on in."
You've got every reason to jump in and crash this party.
That's because this bull market, in spite of its maturity in historical, human terms, is in fact just coming out of "middle childhood" and running headlong into another growth phase.
Listen, if you miss this party, you're going to regret it for the rest of your life.
Think of Markets as a Herd Animal
Of course stock markets don't know they have birthdays; they don't mark time the way humans do.
Rather, they ebb and flow like the tides in the short run and in longer time frames tend to follow economic cycles and capital-based cyclical waves.
(Incidentally, that's exactly why I call my VIP trading service the Capital Wave Forecast. We've done six times better than the markets on our stocks, and 13 times better than the market on our options. A "wave" is definitely the right way to look at it.)
Most analysts and pros will tell you that this particular bull market started once the post-crisis Dow Jones Industrial Average bottomed at 6,443.27 on March 6, 2009, or when the S&P 500 bottomed at 676.53 three days later on March 9.
Only a tiny number of insiders thought that March 2009 was the bottom of the 50%-plus drop in stocks, and an even smaller number knew it would be the beginning of a roaring secular bull market.
I was one of them. That's why you should listen to me now.
After calling the meltdown, once in February 2008 and again in that summer, I called the bottom and the historic rally, here, on March 27, 2009.
How did I know? No mystery…
What the Market Is "Saying" About Its Birthday
Figuring out bear and bull markets is easy – especially relative to analyzing and figuring out which way individual stocks are going. That's because markets are herd animals; you can hear the noise they make and see which way they're running.
Yep, it really is that simple.
The market is saying “Go!” loud and clear. And it’s been saying so for a while.
The noise now – if you listen to the market itself – is the sound of big breaths being taken as the herd (of smart investors) fills their lungs for another marathon run higher.
Forget the naysayers and false prophets who say this bull is long in the tooth and about to break down.
True, the market has been running for eight years on lousy earnings, exponentially exploding public debt, exponentially collapsing commodities and existential threats like China's iffy economy and currency wars.
Optimism is pervasive. Amidst all that human "noise," markets roared higher in the United States, taking lots of global markets along for the ride.
So why would markets turn tail now when earnings are finally, actually picking up?
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Short-Side Fortunes, Shah shows the "little guy" how to make massive size gains – sometimes in a single day – by flipping large asset classes like stocks, bonds, commodities, ETFs and more. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.