There comes a time where you just have to take profits....and there is absolutely nothing wrong with profit taking especially when markets are at extremes and the RSI is at the highest levels since 1929, 1987 and 2000. Always good to have cash on hand for the drop. Look at apple. The company has added $180,000,000,000 in market cap in 1month alone, if you possibly think that apple can continue adding a $150,000,000,000+ in market cap a month you are a fool. Already at 1.1 trillion dollar market cap. What could possibly warrant a $2 trillion market cap. The stock is absolutely priced to perfection at this point.
Now with Draghi out I wonder if they will contin9to drop rates further down And the fed isn't calling it QE yet every other person sees it as QE which is the reason why they are manipulating it higher and higher
I'm not a perma bull, never was, just like I'm not a gold bug. I have no allegance to any direction bullish or bearish. But think about this statement...."Look at apple. The company has added $180,000,000,000 in market cap in 1month alone...." That in itself says that the market does what is least expected. The market howeever displays signposts, reading them is a skill which must be learned otherwise a trader trades 'skitterish' all day long. Markets don't dive up or down majorly without a little bit of warning imo. Dumb money is dumb because they can't read, they just listen to what the media tell them.
If earnings are exceeding analyst expectations and the rate environment is favorable - WTF would you rely upon an RSI oscillator that has taken you out of the rally more than a few times on the weekly since 2009? You quite literally would have left half of the move on the table if your metric for taking profit on a long was an overbought oscillator. And if you initiated a short based on an overbought oscillator - well that would have been outright ruin.
Lagarde is a lawyer, knows pretty much squat about how economies work, and was convicted of negligence for misuse of public funds... there really isn't anything to wonder about!
Your posts on this site concerning AAPL range from mediocre to down right stupid. Suddenly valuation matters to you ? You disliked AAPL when it was a P/E roughly 10. Now you come out with the hyperbole and it's all pretty stupid. AAPL is not "priced to perfection".
After reviewing the current charts my SPX range for the rest of this year is 3055 to 2645 Don't say I didn't warn you when the hammer drops