After a gap-up, price rapidly moved to scrape and break the most recent high. To consolidate and build value here would be normal. I define value in terms of time spent at a given price, but I know this is an arbitrary definition given to such a blessed term. Alas, there is much that is profane, by definition, in this business of trading–such as, the violent downward stroke and equally sudden reversal (see the chart above).
Some write of it in conspiratorial terms (Zero Hedge); some personify it. From the standpoint of private investors, we need to attend to it and realize that for some reason unknown to me at least, the market just shook out enough holders to lower the prices for a catapult upwards. The time needed for these reversals continues to decrease. There is now not more than a couple hours for the active trader to adjust positions. I’d like to complain, but one can only complain in schools where the teacher’s are paid by the state. Down here in the bowels of the great ship Enterprise, we get tossed violently when the vessel moves like this. I suppose from the standpoint of the entire financial edifice upon which so few find magnificent abundance, today’s break of 1850 is terrific advertising. It sets up a nice narrative to wit: The Standard and Poor’s 500 index cleared its all-time high today; let’s cheer for it to clear this high at the close!