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IPFS News Link • Stock Market

Market Finally Cracks - Is The Bull Market Rally Over?

• https://www.zerohedge.com, by Lance Roberts

Over the last few weeks, we have discussed that while the markets were continuing their seemingly "unstoppable" advance, there were many "technical extremes" reached.

Here is the problem with watching media headlines rather than paying attention to what is happening in the underlying market.

Thursday was not a surprise, As noted in "Winter Is Coming:"

"The market is currently at historic market extremes. I explained this concept in much more detail in today's #Macroview.

However, the most critical point of that article was the extreme deviation from long-term means. As noted, trend lines and moving averages tend to act as 'gravity.' The further away the market moves from the trendline, the greater the pull becomes.

When markets are pushing extremes, it seems like it is a "no-lose" scenario for investors. It is at those moments when "selling high" becomes opportunistic, but is incredibly hard to do for the "Fear Of Missing Out (FOMO)"

The question now? Was it a one day blip, or the start of a more significant correction process.

Signs, Signs, Everywhere Signs

Over the last three weeks, we have been publishing "signs of exuberance," which have ranged from incredibly high options speculation to investor positioning. Some of these indicators are now at levels only seen in 1999.

If you have 3-minutes, this video covers quite a few of the current indications which suggest risk continues to outweigh the reward.

(We publish "3-Minutes" Monday-Thursday. Click here to subscribe to our YouTube channel for email notification of all of our video postings and live-streams.)


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