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The Santa Claus rally gone wild


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#1 diogenes227

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Posted 02 January 2020 - 09:36 PM

From the link:

 

 

CNN Money’s “Fear and Greed” Index is at 97. That in itself is in the stratosphere. Extreme greed. It can’t go higher than 100. A year ago it touched 3, on a clock at swings both ways.

 

Still, the market can go higher, and probably will, since there is momentum in that 97 number. It usually takes a divergence (a high below a high) in that index to trigger a decent down swing (see the red circles on the chart below). The index has to back off then fail to go higher as the market does.

 

For more discussion and the Fear and Greed chart:

 

CRAZY SANTA


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#2 da_cheif

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Posted 02 January 2020 - 10:02 PM

From the link:

 

 

CNN Money’s “Fear and Greed” Index is at 97. That in itself is in the stratosphere. Extreme greed. It can’t go higher than 100. A year ago it touched 3, on a clock at swings both ways.

 

Still, the market can go higher, and probably will, since there is momentum in that 97 number. It usually takes a divergence (a high below a high) in that index to trigger a decent down swing (see the red circles on the chart below). The index has to back off then fail to go higher as the market does.

 

For more discussion and the Fear and Greed chart:

 

CRAZY SANTA

it did the same thing a few months after the 03 low    kept goin for 4 mor years



#3 trioderob

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Posted 02 January 2020 - 10:20 PM

and you know what ?

 

when it was at 5 I was telling folks to buy and the immediate responce from this board was : "look out - it can go to 2 "



#4 slupert

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Posted 02 January 2020 - 10:41 PM

From the link:

 

 

CNN Money’s “Fear and Greed” Index is at 97. That in itself is in the stratosphere. Extreme greed. It can’t go higher than 100. A year ago it touched 3, on a clock at swings both ways.

 

Still, the market can go higher, and probably will, since there is momentum in that 97 number. It usually takes a divergence (a high below a high) in that index to trigger a decent down swing (see the red circles on the chart below). The index has to back off then fail to go higher as the market does.

 

For more discussion and the Fear and Greed chart:

 

CRAZY SANTA

I wouldn't discount the possibility of a blow off at these levels. Or maybe they will hold until earnings then down. Import econ numbers (jobs etc. ( often serve for the catalyst for blow off tops.