Consider the following two headlines:
(1) Market Milestone: Pros Say Stock Rally Isn't Over
(2) Options Report: Investors Expect More Volatility in Market
Both headlines appeared on the CNBC website today; one is the antithesis of the other. So why is CNBC talking out of both sides of their mouth? Fair and balanced financial news? Are the waters in the stock market truly this murky?
Bull market's seem to last longer than the fundamentals would allow for. That is, in essence, the psychological influence on financial markets. With tech earnings up, the bull market could last for a few more weeks, or even a couple more months. However, the further it goes beyond the fundamentals, the harder the correction will be.
The options report says that people are buying twice as many put options as they are of call options. Put options allow you to sell stocks at a certain price, while call options allow you to buy stocks at a certain price.
I think CNBC is covering their a$$es. Talk out of both sides of your mouth and you can be right at least part of the time.
Here's a related post regarding the options report, first reported by Bloomberg.com.
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