The charts in this video are powered by MarketSmith
In March, people were talking about another Great Depression. Three months later, we are talking about new all-time highs and Nasdaq 10k. Other than Central Banks pumping liquidity into the system, no one can really explain why the market is going higher. It just is. What if rising prices turn into self-fulfilling prophecies and they actually help companies become stronger businesses? This is how reflexivity works.
Last week brought another round of sector rotations – the U.S. Dollar and Treasuries dove, the leaders in software and biotech took a break, while the so-called old-economy sectors shined and had a spectacular short squeeze. There’s some element of complacency in the market right now but the market can remain frothy longer than short-sellers can remain solvent. Don’t chase blindly extended stocks but be ready to welcome dips as buying opportunities.
Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.
Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.
Check out my free weekly email. to get an idea of the content I share with members.