What is it about calling tops in a strong bull market and actually betting on it that drives some people? If one is into price action though, I think there will be a good shorting opportunity soon on the /ES since it's at the top of a 3-year trend channel. The /ES poked outside the top of the upper channel Friday and closed beneath it, so I have reason to believe that there may be a downswing (not a complete reversal) soon.
Wow...stocks are 2nd most over bought in history ..first time was 1998-2001 Very interesting chart. http://jlfmi.tumblr.com/post/103220804375/u-s-stocks-are-2nd-most-overbought-in-history
If you are only 1/8th confident on the down side, it seems more logical to go 7/8 of a position long.
so that tells me we have HUGE upside still to go if its only 2nd most overbought.... lets get a HUGE rally to get to the 1st place... $$$$ WHOO HOO $$$$ I love ZERO RISK $$$ FREE MONEY $$$ looks like we still have another 50% overboughtness AT LEAST to go $$$
1) USD up 2) high real interst rates in US 3) positive US interest differentials to other developed nations. 4) capital appreciation on equity, debt, real estate in the US "A giant sucking sound." Ross Perot.
At that time, computer players were not so popular. Unlike nowdays, now they have found a way to manipulate the market. So NO HISTORY matters when it is in front of the computer players. They can manipulate the market in anyway they want. Nevertheless, all technical indicators are just the followers of the price.
It's not like it used to be. They can put the price where they want now, and it's best for those in power if they keep pushing it higher and higher. We should really just keep on going up indefinitely, with the occasional 'blip' for things like terror attacks which will push the market down hard for a week or so until it recovers and carries on making new highs. If the 'short' button on everyone's platforms dissappeared, most of the forum could join the winners!