NDX Entering EUPHORIA?
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Historically the last leg of a bull market is EUPHORIA. When waves and structures do not behave in a manner that is consistent with their usual pop correct pop correct price movements. That is a strong indication of distortion and EUPHORIA. You can look at BITCOIN, Gold, NDX in 1999 etc. to see how price moved to understand what we may be entering right now. A 15% straight shot up while unusual does occur from time to time. But not with weakening domestic and international fundamentals.
We have seen massive carpet bombing liquidity over the last 3 months. Lower interest rates, Temporary REPO's that are not so temporary and continue to increase But doen't call them QE, to $1 trillion deficits, $350 billion alone in the first two months of Fiscal 2020 (Oct Nov) which is roughly $50 billion above last year, Tweets from Trump designed to trigger algos in after-hours and so forth. I do not believe anyone on the planet that understands markets does not see the propaganda. From China, ECB etc.. The mechanics of funds always keep up with the crowd which forces buying. Despite what they believe and know and understand they will buy cause the other guy is buying and when the time comes they will sell cause the other guy is selling. They can justify it. That is how the mechanics of markets operate.
Therefore, if you wish to participate in this market, (which I do not recommend) despite your views and understanding that nothing is cheap right now, distortion is the name of the game. You have to consider EUPHORIA and run with the crowd. The correction in EUPHORIA are sharp and violent but very short-lived. If they don't pop the net day almost instantly! then I would worry. That means sizing must be greatly reduced to be able to absorb the volatility. So, for now, I am switching to EUPHORIC Bull. But we need to keep pushing higher. No EUPHORIA struggles to rise.
With that in mind, I present this chart.
We have seen massive carpet bombing liquidity over the last 3 months. Lower interest rates, Temporary REPO's that are not so temporary and continue to increase But doen't call them QE, to $1 trillion deficits, $350 billion alone in the first two months of Fiscal 2020 (Oct Nov) which is roughly $50 billion above last year, Tweets from Trump designed to trigger algos in after-hours and so forth. I do not believe anyone on the planet that understands markets does not see the propaganda. From China, ECB etc.. The mechanics of funds always keep up with the crowd which forces buying. Despite what they believe and know and understand they will buy cause the other guy is buying and when the time comes they will sell cause the other guy is selling. They can justify it. That is how the mechanics of markets operate.
Therefore, if you wish to participate in this market, (which I do not recommend) despite your views and understanding that nothing is cheap right now, distortion is the name of the game. You have to consider EUPHORIA and run with the crowd. The correction in EUPHORIA are sharp and violent but very short-lived. If they don't pop the net day almost instantly! then I would worry. That means sizing must be greatly reduced to be able to absorb the volatility. So, for now, I am switching to EUPHORIC Bull. But we need to keep pushing higher. No EUPHORIA struggles to rise.
With that in mind, I present this chart.
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