In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 1/27/2013.
The relentless march of the major market indexes into the nosebleed section continued, as the S&P 500 took out its milestone 1,500 level on the second try by closing the week at 1,503.
It’s simply amazing what the Fed’s monthly monetary pump fest of $85 billion can do as there seemingly is no end in sight as to how high we can go. Some analysts pegged the next level at the 1,560 area, which would represent a new high for this benchmark index. We may get there, but when this run ends, it will end badly in a hurry most likely caused by some black swan event.
Obviously, there is no rationale behind this move as the economy continues to chug along totally disconnected from current market levels. Nevertheless, the trend is towards higher prices until the music stops, at which point anything is possible. This is exactly the type of environment where you can get burned financially if you do not have your exit strategy in place.
Should the trend reverse, be sure to execute your sell stops. If you’re new to the sell stop idea, you can download my free e-Book on the topic here.
Over past week, we covered the following: