All Rise, Court Is In Session

“All rise, court is in session.” Once the bailiff says that phrase, you stand because that’s what you do. It’s the law.

The market is seeing a lot of demand for stocks – they all rise, that’s what they do.

The market is governed by a law – the law of supply and demand.

If stocks keep rising it’ll be standing room only soon.

Since our last post, Bull Crossing, the S&P 500 made all-time highs and likely many brokerage accounts reached new heights. While the media argues over the fundamentals and technicals, we’ll focus on demand for stocks.

Right now, demand is the new sheriff in town and the last 2 weeks have been full of demand:

But let’s zoom in daily. Last week we made a chart that shows how demand can give the “all rise” signal.

Below are the net buy/sell signals each day. A green bar means more buys than sells for a given day. Red bars are days when sells are larger than buys. As an example, 100 buys and 50 sells results in a 50 green bar.

After big red sticks, look for green. Bailiffs and buyers give the “all rise” signal. I’ve circled the day that led to our last blog post, Bull Crossing.

Bottom line – the trend is your friend…the big money trend.