Same here, too big for me and skeptical with the stock market. A single news or a fresh scandal can kill the chart like when you turn off the light. Good for the American pension funds.
By the way, did you notice the graph during Q1 2018 Didn't make you think about Bitcoin for the same period?
Actually the stock market has surprised me making such a long growth since 2009 so perhaps you are right that you do not pay attention on the stock market.
Bitcoin is a big puzzle for me. I know just that the Bitcoin capitalization is being held upper than 100 billions $ as far as I know it need to have an ability to trade futures. I am holding some altcoins (including Ethereum) but I am not waiting that they will grow quite soon after so strong downtrend.
The US stock market closed this week in the red zone. The S&P500 index could not preserve the level 3000 and we saw that somebody was selling off the equities during last couple of days.
Why it might be so important? As we know the stock market is pretty overbought especially such the giants like Amazon, Facebook and so on. As far as I know plenty of traders are waiting a quite strong correction (10-30%) and there is the crucial question for many traders, I mean, is it the new correction or it is just the trap for bears?
the eternal question when it comes to the SPX......
i think it makes sense to wait and see whether the $2870 area holds. that was the prior top in january and
should be support if the market is still bullish. price has not fallen below the previous high, and the uptrend from 2011 is still comfortably intact. no momentum or volume to the selling yet. no reason to be too bearish yet.
By the way does anybody have a short position in S&P500 and what is the price?
when it comes to the USA stock market, the correct play for many years has been
keep betting on the trend until it ends. i'm definitely not short. i don't try to catch tops on stock indices. too many people have died trying to fade the SPX (rest their souls).
Yeah, there are a very popular opinion that the level 2970 is a key level and if we see that the level is broken out then traders and algorithmic robots will begin selling. This point of view is excellent but I am afraid that the downward movement may be so strong and fast to have time to sell by an attractive price.
You are right that you are waiting a confirmation in case of changing the trend direction but I sometimes form my position a bit earlier and if something goes wrong I close it I know that such an approach is more risky but I do so.
The US stock market is definitely due for a correction on par with what happened with Bitcoin this year. We know that most of
these stocks are over priced and things cannot go on as normal for much longer. Warren Buffett's Berkshire Hathaway
(BRK.A), is the most over priced stocks in the market and he will feel the pain when these stocks starts collapsing soon.
He is quick to call Bitcoin a bubble, but I think those stocks are definitely a much bigger bubble than Bitcoin ever was.
It's definitely been feeling like the irrational exuberance stage of the rally. But hell, it's been feeling that way since this time last year.
I honestly wouldn't be surprised to see another leg upwards, looking at the 1-month chart. Alternatively, I think there should be another attempt on the recent highs before any serious correction.
I'm out of the stock market though; it's feeling too risky for my taste. My cash is moving back into the crypto market, and my retirement accounts are in cash. I'll buy into the blood whenever it happens, whether that's months or years from now. Much more interested in trading crypto once BTC breaks out of this sideways pattern.
Frankly speaking I do not expect that the US stock market will climb substantially higher than the previous peak which was around 2940 but I cannot exclude that institutional traders will make an attempt to beat out retail traders from their short positions. There are a lot of variants how to close most part of retail traders by activating their stop-loses (for example, drawing a spike on the chart or drawing a saw with breaking out the level 3000). I understand that everything is possible on market and I can be totally wrong in my assumptions that is why I do not suggest anybody to open short positions in the S&P500 index.
My guess is that the level 2920-2925 is quite attractive for me to open a tiny short position which can be increased a bit later.
He is quick to call Bitcoin a bubble, but I think those stocks are definitely a much bigger bubble than Bitcoin ever was.
Could be, but the fact that there is too much fiat in circulation might be playing an important role in how the stock market bubble may last much longer than we think, which is why I wouldn't be surprised to see it go up more.
When the bubble finally pops, you can be sure that the bear market will last several years with how slow the legacy market cycles through its phases. The next question will be where all that capital will shift to.
It could be that crypto will directly benefit from a stock market pop. If even 10% of that capital ends up in the crypto market, we'll see an institutional driven bull run that makes the previous retail bull runs look like a joke.
The crypto market has immense potential but nobody knows when it will be implemented.