Avi Gilburt: Can the market now head to new all-time highs?

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Avi Gilburt: Can the market now head to new all-time highs?

Last weekend, I questioned whether a crash can still set up for much later this year? And, the answer is, "of course." This week, I question the opposite - that is, can we still get to the all-time high? And, the answer is also"of course."

First, we have all heard that the premise that the stock market is"forward-looking," which is why many believe the market is a leading indicator for the economy. And, in order to believe this premise, one has to accept an underlying premise that the stock market or the investor community is somewhat omniscient or clairvoyant to be able to foresee the future. I do not subscribe to such premises.

And, when you are able to understand the individual patterns for each chart, you really have no need for seeming correlations. Moreover, understanding each chart on its own will allow you to even predict when the seeming correlations will break. And, I have done this many times throughout my career. Ladies and gentlemen, one cannot impose one's own perspective upon the market and then make a straw-man argument based upon that perspective. Too many in the media assign what they believe to be the reason why a market is moving in one direction or another. And, if we are being honest with ourselves, we must recognize that they are simply blowing hot air.

As human beings, we have a desire to be in control. And, we believe we are in control of the markets when we think we can come up with a reason as to why the market moves in one way or another. But, this brings me to another opportunity I can present the wise words of Robert Prechter from one of the best books I have ever read on the market - The Socionomic Theory of Finance :

 

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