What's Driving this Strong Stock Market?

Admit it, you're astounded and confounded at why this stock market is going up.  I can either give you the long list of problems facing this country and this economy, or I can show you THIS!!
You know us, we are tied at the hip with our Asset Allocation Model that uses historical data to determine what makes the market tick.  That model has been preaching long-term bullishness since October of 2008 as that massive deleveraging preceded the residual paralysis of the public investor as the March 9th, 2009, low was made.  We've had a couple of yellow lights along the way since then, as our Psychology Composite moved to a cautious P5 level, but in both cases, the ensuing correction resurrected the necessary fear to repair the "Wall of Worry" that bull markets thrive on.
We've been hinting in recent weeks that we were seeing some new cracks in the "Wall of Worry," but to remain VERY BULLISH for the next 12 months, as history shows that there is still a very strong chance that stocks will have a positive gain in that period.  I did an interview with Yahoo! Finance's Breakout blog on Friday discussing this, which you can watch by clicking here.  We've also added our belief and observations that bull markets DON'T end until Monetary Liquidity dries up, and currently, that leg is powerfully bullish.
But despite our faint yellow light for the short-term...the stock market has continued to thrive.
Don Hays
If you are a subscriber to HaysAdvisory.com, click here to read our recent reports.  If you would like to learn more about the research and commentary offered by Hays Advisory, click here.
Please see important disclosures at the bottom of this page.