I’m heading off to India in a couple days to speak at the CMT Association’s India Summit, and I can’t wait to hear some international perspectives about what’s happening with markets today.
But before the long flight I made a quick stop over to Sacramento and got a reminder of just how angry some permabears are here at home.
After my presentation to a group of traders I had a guy in the front row visibly upset at me because of how bullish I am of Europe stocks. He was so angry that I would have the audacity to suggest such a thing. He had to get up and leave because he couldn’t take it.
I don’t know about you, but this does not seem like Euphoria to me.
The Planet URTH Rallies
For those of us who weren’t too busy reading reports of upcoming recessions, you may have noticed that the iShares MSCI World ETF broke out to new all-time highs this month. The award for best ETF Ticker goes to the good folks at iShares: URTH.
After a 21-month bear market, the planet Earth is now starting a new leg higher. I continue to believe very strongly that if stocks are above last year’s highs, it is incredibly irresponsible not to be aggressively long.
This is what URTH looks like bigger picture. We have multiple extension levels clustering together around $105-$106 and that’s where I think we’re going:
You can see this even clearer in the S&P Global 100 Index. After failing about five times under $50, prices were finally able to absorb all of that overhead supply and start a new leg higher. The 21-month bear market is perfectly clear in this chart:
$55 continues to be a good target and that’s still where I think we’re going.
As more and more countries around the world keep breaking out to new all-time highs – Canada, Sweden, Denmark, Switzerland, New Zealand, Russia, Hungary and many others that we keep adding to the list – it’s hard to put together any kind of intermediate to long-term bearish thesis.
Short-term, sure we could see a little volatility. Why not. But that doesn’t change the fact that we are seeing breakouts out of massive bases all over the world.