is clearly topping out at 3015 in a broadening formation. This index is overvalued using DCF
valuation (5% growth, 8.6% discount rate) by 15%. Expect a fall down to 2500. The Nasdaq 100 is also topping out and the Russell 2000 never confirmed the highs in these indices. Look at the RSI
. All have topped out and are turning lower. I am expecting Trump to make more tweets about putting tariffs on European car imports and other tariffs in addition to China. Compared to 2000 and 2007, this market's P/E ratio
is high when considering how low inflation
, interest rates and the earnings
growth rates are. Stocks to short which have absurdly high P/Es include TSLA
, UBER. You could short AAPL
too on a trade war escalation. Just a footnote, Netflix
has dropped 12% overnight on decrease in growth of subscribers. Is this a sign of things to come shortly?
Second footnote: Broadening formations were seen in some stocks in 1929. Is this a harbinger for today?