Is the US market in Bubble?
The above chart can scare you and give the impression that it has run too much but what chart does not capture...context i.e. what is market trying to price in. The chart can give you an impression that everybody is super bullish on the market
But reality is totally different. There is hardly anyone sounding bullish. Just look at what all influential voices on Wall Street have to say about the market
— Yahoo Finance (@YahooFinance) August 3, 2016
— Jesse Colombo (@TheBubbleBubble) August 2, 2016
Goldman Sachs Finally Says to Sell Stocks https://t.co/MgWhVA6vqE
— B4IN Money Editor (@B4INMoney) August 4, 2016
Janus Capital's Bill Gross: I don't like most stocks, but I do like gold https://t.co/DIXaify2Ff
— CNBC (@CNBC) August 3, 2016
But what is the market doing? - It's consistently making new HIGHS
The Most Bullish thing a market can do is Move Up.
Nasdaq tops year-old record, S&P 500 hits high, too https://t.co/XofrZnMTPv
— Ben Owen, HRK (@hrkbenowen) August 6, 2016
The Big question: Will the trend continue?
"Volatility is greatest at turning points, diminishing as a new trend becomes established."
- George Soros
— Trading Proverbs (@tradingproverbs) August 4, 2016
Ok, so How is the Volatility?
It's trading near 5 year lows
Chart: VIX - pic.twitter.com/VroQZoOriW
— (((SoberLook))) (@SoberLook) August 5, 2016
Hmm...Just because somebody hates the market does not make it a Sell. The Price on the Screen is screaming that it's Bullish and that's all that counts. There is a very simple message: Don't fight with the market.
Who is Bullish?
Answer: The Market 🙂
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers