Now that the $SPX has finally reached an all-time record high, what’s next? Will investors continues to buy stocks up here? Here’s a look at the 9mo chart:
Feel free to discuss in the comment section.
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truly amazing to see the whole move from the financial crisis erased.
I prefer to avoid thinking about where the market must go. It can do anything at any time. Obviously, a little extra caution is required here. Maintain a sound set of trading rules as always.
We may be starting to see capital fleeing Japan. If that is the case we could go parabolic if there is no event to spark a sell-off. If you are a Japanese investor you have to be getting concerned about bond prices dropping and the yen dropping hard. Japan is a relatively rich country and a large economy. Fund flows from there, especially if things start getting disorderly, could potentially trump any chart pattern, US economic fundamentals, or seasonal pullback thesis.
well said.
All good points. If I was a Japanese bond owner I would also be worried about volatility – things may become very unpredictable very fast.
We already have many homebuyers in NJ/NY from Asia paying cash; it seems like price is not a major consideration. Any place to put money, it seems. And the explosion of Bitcoin is anecdotally driven by either Japanese or Russian buyers.
The market could trade up quite far from here under these conditions.
I’m thinking the same re: market can trade up. Just not seeing as many premium setups as I would like to.
Sitting mostly in cash here.
Mostly cash here too. Raggedy flags aplenty. Pushed the envelope a little on the Japan trades, but as Sikander points out, there seems to be a trump there (massive free money)
Yes,very good points. The focus of my trading at the moment is short yen and long Japanese exporters. If I were a Japanese investor I suppose I would be looking something relatively large and stable, sort of like what is working now…. maybe there is a reason for that and the tsy rally.
If I were Japanese and moving money here I’d look for big liquid companies that I have heard about. Hence, Dow components, big tech etc. I wouldn’t focus so much on economically sensitive issues or small caps. I’d want the protection of big and liquid.
XLP fits nicely, BRKB, like tylenol, good for just about anything.
so does $AAPL