Go tell the ET trolls that. These guys are a glutton for punishment. It is amazing they have not gone bankrupt yet. Maybe, coming real soon? I think the odds are pretty good they will blow up their accounts sooner than later.
Many stocks have had parabolic moves to the upside along with very stretched valuations. Pins come in many forms, however, they all have the power to pop. I have included some support levels. The top level is the previous high on the naz. The levels are basically every 1000 points, give or take 200.
If we look at a historic chart, we can see there are bear phases and bull phases, with each secular bull phases lasting about 17 years. This is a very small data set in terms of analyzing these phases, so take it "with a grain of salt". Following this logic, we started the current bull phase around 2013...we could easily see a continuation of the bull move (with mini bear markets included) until the end of this decade.
Market makes less than no sense up here with pandemic and valuations. But bubbles can go a long time before crashing. I'll be mostly daytrading. When a major correction occurs it'll likely be extreme.
Here is an alternative view on why market is not overvalued. https://www.forbes.com/sites/johnto...lief-that-the-stock-market-is-overvalued/amp/
There is obviously profit if you get the timing right. Se might say, "That's just being lucky." I'd say Michael Burry disproved that. The brilliant part of his plan was knowing when the adjustable rates changed a would force a crash. As far as someone else's car analogy, I'd say it's more like selling your house at the peak of a real estate boom, then living in an apt for a year and buying it back after the crash. I do think there could be more upside left. I'm not fully convinced that we are at the peak, but I feel like more and more mental gymnastics are being used by professionals in order to justify high valuations.
The question is, will earnings growth continue like it has the past year? Would love to hear opinions. If earnings keep rising then it would seem that we are simply Venezuela.
When you see the reverse pullback on the S&P by a 1" or 2" or 3" or 4" movement on the chart, buy put options and make bank till another reverse pullback happens by a 1" or 2" or 3" or 4" movement on the chart, and buy call options. Ride that roller coaster mountain of profits up and down until you become so rich.
The reason for it making no sense is that folks keep making false assumptions about how the financial markets work. Meanwhile, the best gains right now are just buying the dips.