The Masses Have Piled Money Into The Market In Past Three Weeks (03/25/2015)

People sell on bottoms and buy in a frenzy at tops.

According to a CNBC story:

As money surges into the market, is it time for savvy investors to cash out?

That's what a report from TrimTabs suggests, at least on a near-term basis. The investment research company reported on Sunday that investors have added $46.8 billion to equity mutual funds and exchange-traded funds in March, the most for any month since October 2013.

"Fund flows data does not bode well for U.S. equities in the short term," TrimTabs concludes.

However, don't worry says CNBC:

"I don't think it signals a top of any sort. It's a lagging indicator. It's garbage, as far as I'm concerned," said David Seaburg , head of equity sales trading with Cowen & Co.

In fact, Seaburg says that many of the well-known indicators don't work in such a central-bank dominated trading environment.

"The old sort of indications of what signaled the top in the past are out the window. Look how long it has taken us to get our arms around the volume. Markets that go up on low-volume days, does that mean it's not a confirmed sort of rally? It's garbage," he said.

The key now is "don't fight the Fed, and also don't fight every central bank out there keeping rates as low as they are," he said. "I think the market is going to grind higher."

Full article here.

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