Psychological Indicator Confirming That The Rally Still Has Legs

http://finance.yahoo.com/news/ALL-BUSINESS-Can-the-stock-apf-1309839524.html?x=0&sec=topStories&pos=1&asset=&ccode=


The fact that these so called analysts are starting to get bearish is reason enough for me to believe that we still have some room to go. I will take some profits when the VIX hits 20, but I will be right back in once it jumps to over extended levels. The authors comment about rising interest rates leading to market declines is laughable at best. Who is she fooling? I guess a sucker is really born every minute. The last time I checked, interest rates were constantly being raised during the last bull market rally that ended in late 2007. If anyone actually followed that advice and stood on the sidelines during the interest rate hikes, they would have severely underperformed the market and missed out on some of the biggest possible gains. I'll be fair and say that on the days that interest rate increases are announced, the market does usually take a dive, but it is usually a short/temporary dip that provides a buying opportunity. When interest rates increase, markets usually follow. I think CD interest rate action is one of the biggest indicators of market direction. Back in March/April 2009, I slowly noticed CD interest rates increase. Coincidence? I think not. And why not pay you a slightly higher interest rate while they use your money to make an even higher return in the ready to rebound stock market?