Has anything of this type of movement ever happened before? I mean that line is completely VERTICAL!!!!!! Its not even a gradual slant. Its literally straight up.
%% Parabolic stop /reverse is up only 2 months/TQQQ, less for SPY; see what end of SEPT does?????????????????????????????????????
VIX is constantly elevated due to COVID, this is pushing the markets higher and higher. The market cant move up slowly in this volatile state, only knows how to move up fast now.
I think we are going to witness one fu$k of a drop any day now. Every indicator is showing extremely overbought conditions.
No more big downs in the NDX ever again. NDX has reached escape velocity. There is no gravity to pull it back down from where it is going..
I think you are right. Even if it does push down its for an hour or at most a day or 2 and right back up it goes. I find it fully amazing that the fed hasn't had any emergency meetings to curb such gains. Gains after gains as the fed sits quietly and prints unlimited amounts of money.
Now imagine if the markets were falling the way they have been rising the last 5 months. The fed had intervened in every move down yet not once have they mentioned anything about irrational exuberance. Shhhhhhhhhhhhh Its all fun and GAINS until the next crisis comes along, but no worries as each time we get a crisis the fed is there to print more and more money. As I come to think about it, can there be anything worse that a world wide pandemic? Nothing but the possibility of a meteor coming straight to earth, but even that guesstimate its millions of years away. So trade on and make those free bucks.
Extreme overbought a lot of the times is actually a short term and medium term bullish signal, which generally speaking is a pretty decent trade to take (to the long side). There's only decent probabilities using overbought / means reversion for shorting if you have a corresponding sell signal (that has an edge) to know when to expect the overbought to be filled back in. Otherwise there's no way to effectively manage your risk looking for the overbought to be cleared.