I still don't understand how pricing is done when futures are 24/7. AAPL closes extended hours at X Futures zoom AAPL open extended hours at ??? HTF do you figure this pricing...
The price of a financial assest is only worth what you can convince somebody else to buy it for. There is one way and one way only to make price to go up, and that is to buy. However, high and low are only relative, not absolute. Therefore your job in trading is to figure out when other people are likely to begin buying or selling and enter a position before that happens. Reversion-to-mean and momentum are both viable strategies. If you don't like either strategy, learn to hedge.
Lots of money on sidelines itching to get in. When that happens which will happen soon, market will rally again
We have a colateral shortage of epic proportions, money which searches only AAA security and you talk about risk assets inflow? There is institutions paying interest for lending their money right now, don't you think they would have bought stocks if they considered them to be an opportunity? But obviously they don't.
Did it happen overnight? This issue did not exist two weeks ago? Why did we have money inflow back then? Did we have inflation two weeks ago?
Large portions of the market are not overvalued. Every time the market sells there is huge buying on those stocks. TSX there was buying in the commodity stocks the whole day ( every commodity ). The volatility is massive rotation of money it's even more obvious in Canada.