UPDATE: Some investors see signs stock market 'on verge' of a melt-up
By William Watts, MarketWatch
'Excessive credit and a timid Fed' set the stage, analyst says
Some market veterans think stocks are at long last due for a meltup.
"We make the case that despite the Fed's intent, we're on the verge of being in a melt-up stage, fueled by excessive credit and a timid Fed," wrote technical analyst Jeff deGraaf, chairman of Renaissance Macro Research, in a Wednesday note.
Longtime market bull Jeffrey Saut, chief investment strategist at Raymond James, on Tuesday argued that the S&P 500 , in the wake of a Sept. 25 reversal to the upside, "now appears to be involved in a melt-up."
The S&P followed that turnaround with a series of fresh records and is up more than 13% so far this year.
Saut pointed to the Investopedia definition (http://www.investopedia.com/terms/m/melt-up.asp) of a meltup as a "dramatic and unexpected" rise in the performance of an asset class driven in part by a stampede of investors who don't want to miss out on the rise rather than by improvements in fundamentals.
Saut, who noted that Raymond James's short- and intermediate-term models had turned negative in early August, said the recent rally "was certainly unexpected by us."