I remember those days of Internet bubble when I would put any trade going long and by the close of the market I close the trade with profit. No technicals or fundamentals required just go long and you guaranteed profits. Well those that remember know what happened. We are experiencing the same situation in the markets now all you have to do is just go long and collect profits. Now thing about it, is this normal?
Here is what Credit Suisse’s Soss says “You had to be short volatility in order to survive in today’s low interest markets “ https://youtu.be/Fak-PrevrrA
Since, the government allowed the Fed to print money at will, the market will continue to rally. The question is are the profits really worth anything? We are facing the highest inflation ever. The $1000 in profits will soon have $10 buying power, may be at best.
https://www.forbes.com/sites/mayrarodriguezvalladares/2019/07/25/u-s-corporate-debt-continues-to-rise-as-do-problem-leveraged-loans/ total US corporate debt is $15.5 trillion, 74% of US GDP. It is no wonder then that the International Institute of Finance in its Global Debt Monitor, has an ‘amber light for the U.S. corporate sector.’ U.S. corporate debt growing has been growing above trend, fueled by an increase in bank lending “adding to worries about vulnerabilities in the corporate sector.” This represents a rise of 52% from its last peak the third quarter of 2008, when corporate debt was at $6.6 trillion, about 44% of 2008 GDP.
Market moves are all engineered by market makers. The only reason for euphoria in the markets is because they wanted it that way, so they can easily sell out their inventory of stocks to those who are buying the fake news. All economical statistics are a bluff. Eventually when market makers distribute their inventory of stocks the markets have no other way but to drop. Remember market makers are the strong hands and we are weak hands.