Markets top imminent, or "melt-up"?

Discussion in 'Technical Analysis' started by Scataphagos, Oct 16, 2017.

  1. Top pickers so far have been wrong.

    Advocates of "market melt-up" still looking good.

    Chart guy that I am... and while not "pounding the table" with any prediction... I can envision this rally continuing for perhaps another year. IOW... it could be that we are not even "all that close" to the ultimate top.

    The $DAX chart is as good as any for revealing "where we are".
     
    Last edited: Oct 16, 2017
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  2. Just last week I commented that the long term charts look a bit more like 1994, 2006, and 1986...being the 'pivot' from ordinary growth into the bubble. Not very useful for the short term--at lots of potential geopolitical (and domestic) catalysts to end the orgy. But nothing to suggest the end is nigh...and least IMHO.
     
  3. Simples

    Simples

    Humans are funny, unable to anticipate the opposite of downward acceleration.
     
  4. algofy

    algofy

    I really enjoy the term "Melt-up"
     
    Simples likes this.
  5. Visaria

    Visaria

    I think the equity market will continue to move up and perhaps accelerate with perhaps the surprise duo outcome of an increase in volatility (normally vol decreases as markets move up)
     
  6. comagnum

    comagnum

    We need a massive rinse job on the VIX first before the market can take good hit. Way to many people betting on the market going down - this crowd has to capitulate first before we get a good some real volatility back in the mix.

    upload_2017-10-16_16-8-36.png
     
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  7. Visaria

    Visaria

    You need to look at the net spec position as a percentage of open interest. If you do that, you'll see that the trade is NOT crowded at all.
     
  8. Chris Mac

    Chris Mac

    For sure, even if we are close to the top, we will have months and months to sell / short the market. It is never a buying or selling opportunity but rather periods of buying or selling opportunity.
    On a ST basis, right now I think there are nice short opportunities, you just have to wait supports to break. And again, rebounds will be strong too.

    CM
     
  9. speedo

    speedo

    Dennis Gartman expression.
     
  10. truetype

    truetype

    Melt-up is the opposite of what happened to the mutual fund he used to manage.
     
    #10     Oct 17, 2017