The market continues to climb higher as many market participants continue to ponder on when it will rollover and experience a sizeable correction to remove the excess. Many have put forth technical corollaries to point out the similarities from the past and the consequences it might hold. Numerous price derivative indicators highlighting excessive overbought have been published to support the cries for a correction from these market participants.
Yes, the PE is too high! Yes, the OS/OB oscillator is in extreme OB. Yes, this market has been going up for more than 7 years. But as we all have seen and experienced many time in the past, the market will seldom, if ever, be accommodating to do what the market participants expect it to do, and it will rarely do the obvious! In a few words, “Nothing is new!” Instead of spending time keep saying what the market should do, I’d rather spend those time listening to what the market is saying! It is entertaining to watch those wiggly lines and creative patterns, and chuckling at those imaginative stories. But at the end of the day, it is about being on the right side of the trade not being correctly predict what the market will do!
In the video, a review of the market and an update on the momo stocks: AAPL, FB, NFLX, TWTR, AMZN, GOOGL and TSLA.
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