I really think that the bullish trend is broken and that the market will soon realize that the pricing is built on easy money and Bigger Fool bets very soon - tight movie theatre door etc etc.
The end of a market cycle is always a fool's game - the smart money is gone and only those in denial are left trading for the great honor of holding the bags. I believe that is exactly what is going on in the moment: The only actors left are those believing they can always find a bigger fool to sell to.
Mainstream financial media makes money by keeping market sentiment bullish, so they provide a medium for - Asset managers, who make money by keeping market sentiment bullish - Banks, who make money by keeping market sentiment bullish - Exchanges, who make money by keeping market sentiment bullish - Financial advisors, who make money by keeping market sentiment bullish
= > Bubbles pop way before we see it in mainstream media and market price.
My opinion is that one should either stay out right now - or make bets to the downside if have the stomach for it. I personally trade the VIX, but I would not recommend this to most!
It just made a higher low and closed as a hammer candle. How is the bullish trend broken?
TheDots
⋅
@darshan1992, The trend broke already in September and got rejected on the re-test in November. What has happened since then is just a market in denial - I am not a short term trader, so it sure might be some upside in the short term, but this is a dead man walking and everybody knows it. The most important point of the post was not the trend break in a T.A. sense, but rather that NOT EVEN T.A. is indicating insanity anymore. Everyone knows that the market is completely decoupled from reality, so the ones buying now as an investment only bets that they can get out before everyone else - in other words, trampling is in the brewing.