Markets as anticipated defy all the doubts heading to new high ground

Market Defies Bearish Views and Goes Its Own Way To Its Destiny

Months ago famous billionaires George  Soros, Bill Gross,Carl Icahn, Druckenmiller , and Jeff Gundlach all declared themselves bearish on equity markets.I said that this bearish comments on markets would create kind of contrarian support to the market. How would market react to that?

Back to six years ago when markets rallied nicely, Paul Tutor Jones made a comment via Bloomberg that he would not chase market , considering the macro-fundamental was not so strong that market rally would have  further to go. Along the way until now, this second-longest bull market has surprises many market players and has been making us so suspicious on its legality and durability.But as long as there are so many doubters and /or perma bears around, this bull market will continue to climb the wall of worry.

So why have so many famous market players talked down market? Don't  they really have no idea about what's going on? Of course not. To my views all those gentlemen have their own agenda. Lets say Jeff Gundlach, the young bond king, may have two agendas ( to educated guess) for why he is so bearish on equity market: a. being bearish on equity market, he may hope to have a bullish bond market;b. He endorses Donald Trump to be next president. Historically when markets performed poorly during election year, incumbent party would lose presidential election, 80% of the time.

Carl Icahn also belongs to second category. he publicly claimed that he would like to be Trump's Treasury if Trump is president.

Another bearish comments on equity markets may result from the fact that these market players want to take advantage of media to make up or add long positions....

This year gold and gold stocks have huge run. Jeff Gundlach was right at this aspect that the global central banks will continue to create ample liquidity and  will not raise interest rate at faster paces.The previous  three years' plunge with gold prices was overdone, and lot of gold stocks were priced in bankruptcy as the global equity markets did in 2009. So gold stocks revenged to run up immensely. But I think this run seems to be overdone and this gold bull rally is not the beginning of another leg of super gold bull market.

Weeks ago I found great Dow theorist  Richard Russell passed way on November 23, 2015.We lost a truly great market theorist.  I thought that I would interview him some time ago. His five decades' Dow letters of  using Dow theory to interpret market will be a market treasure for us forever.  Wish he Rests In Peace.

Gunning Ju

A market analyst

From Flushing, New York