Medium term TOP in
Updated
While liquidity has greatly helped fuel earning recovery and the stock market. Those earning have reached their maximum growth Q/Q or Yr/Yr. It is my contention that the evaluation will have to be contracted to reflect this reality. Picking tops in exuberant times is always a risky proposition, hence why I will try to pin a low risk entry using a smaller time frame. With this morning reversal from new highs, I feel very conformable with my new short position on the market.
I love bull's arrogance and is a key component of calling tops. 2 days ago, DWAC came public. I wont even say more about that :-) If you don't see how insulting it is to a rational investor you will need luck. Yesterday, Jim Cramer mocked bears. Thanks, Jim, for the great call!
I think the market is due for another 30%+ correction. With today's reversal the possibility of a melt-up I believe is lower than yesterday. If I am wrong, I will be out near break-even on the trade.
What we're witnessing here is some key stock and sectors roaring on the upside with panic buying holding up this hugely overpriced market. Under the surface, a lot of deterioration is happening.
I love bull's arrogance and is a key component of calling tops. 2 days ago, DWAC came public. I wont even say more about that :-) If you don't see how insulting it is to a rational investor you will need luck. Yesterday, Jim Cramer mocked bears. Thanks, Jim, for the great call!
I think the market is due for another 30%+ correction. With today's reversal the possibility of a melt-up I believe is lower than yesterday. If I am wrong, I will be out near break-even on the trade.
What we're witnessing here is some key stock and sectors roaring on the upside with panic buying holding up this hugely overpriced market. Under the surface, a lot of deterioration is happening.
Trade closed: stop reached
The market most probably opted for a blow-up finale. At the speed we're going it could all be over in days or weeks. Shorts will get squeezed, media will be in a frenzy, the urge to buy will become irresistable.Analyst price upgrade on TELSA from 950 to $1200 is fueling the frenzy.
Like 1987 and 1999-2000 it will end very abruptly. Most probably on a gap up into a new all time high.
I have no price target on the upside. Melt-ups are unpredictable.
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