Zoom out the Zoom..! The past 3 years
I think whatever you need to know about a Formation of bubbles and their burst you can see in the ZM chart:
An 805% move in 18 months followed by an 84% decline in the next 17 months:
During that 84% decline, you see a 36% and 48% positive surge, but the aftermath remained the same..!
Even a significant change in the fundamental did not help:
But ZM was not alone, other examples are:
NIO: +5500% followed by -80%
DOCU:
And the mother of All bubbles:
ARKK:
and the Final point:
Gauging Market Changes
The key determinant of whether the market is bull or bear is not just the market's knee-jerk reaction to a particular event, but how it's performing over the long term. Small movements only represent a short-term trend or a market correction. Whether or not there is going to be a bull market or a bear market can only be determined over a longer time period.
However, not all long movements in the market can be characterized as bull or bear. Sometimes a market may go through a period of stagnation as it tries to find direction. In this case, a series of upward and downward movements would actually cancel-out gains and losses resulting in a flat market trend.(Investopedia)
Conclusion:
You can be in the Bearish market yet see the most Exotic Bullish rallies..!
Best,
Dr. Moshkelgosha M.D
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
*I have open positions in SARK(74.36), SOXS(40), TZA(30.60)
An 805% move in 18 months followed by an 84% decline in the next 17 months:
During that 84% decline, you see a 36% and 48% positive surge, but the aftermath remained the same..!
Even a significant change in the fundamental did not help:
But ZM was not alone, other examples are:
NIO: +5500% followed by -80%
DOCU:
And the mother of All bubbles:
ARKK:
and the Final point:
Gauging Market Changes
The key determinant of whether the market is bull or bear is not just the market's knee-jerk reaction to a particular event, but how it's performing over the long term. Small movements only represent a short-term trend or a market correction. Whether or not there is going to be a bull market or a bear market can only be determined over a longer time period.
However, not all long movements in the market can be characterized as bull or bear. Sometimes a market may go through a period of stagnation as it tries to find direction. In this case, a series of upward and downward movements would actually cancel-out gains and losses resulting in a flat market trend.(Investopedia)
Conclusion:
You can be in the Bearish market yet see the most Exotic Bullish rallies..!
Best,
Dr. Moshkelgosha M.D
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
*I have open positions in SARK(74.36), SOXS(40), TZA(30.60)
Comment:
SARk 47.36