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An Overvalued, Overbought & Overleveraged Stock Market While The Fed Tightens, What Could Go Wrong?


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#1 dTraderB

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Posted 19 November 2021 - 01:54 PM

Starting next week's POST now

 

Summary
  • Stock market valuations and the Buffett valuation indicator are at historic highs.
  • 411 of 500 S&P 500 stocks are trading above their 200-day moving average.
  • The weekly RSI on SPY is overbought again just like before September mini-correction, this time the monthly RSI is overbought too, like 1999, 2007, 2013, 2018 and 2020.
  • Leverage and call option volume are at all-time highs as well.
  • Meanwhile, the Fed and Treasury are reducing liquidity.

https://seekingalpha...-could-go-wrong



#2 12SPX

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Posted 19 November 2021 - 02:19 PM

1. Stocks: all-time highs
2. Home prices: all-time highs
3. Crypto market cap: all-time highs
4. Wages: all-time highs
5. Job openings: all-time highs
6. Inflation: highest in 30 years
7. Fed/Government: we need to hold interest rates down at 0% and borrow/spend trillions more.


#3 pdx5

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Posted 19 November 2021 - 05:25 PM

Keep enjoying the party. Time to quit will be when the band (FED) stops playing. We are a long way from 10 year treasury rates coming close to inflation rates. The bar is still open and music is still playing.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#4 Rogerdodger

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Posted 19 November 2021 - 08:59 PM

AMERICA IS AT ALL-TIME HIGHS! 

 

America-high.jpg



#5 kinga200

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Posted 20 November 2021 - 12:34 AM

Hey man its me Dave, let me in. Dave? Daves not here.

#6 12SPX

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Posted 22 November 2021 - 09:33 AM

Not surprising the market opened up for last night but didn't think my profit stop would be hit so fast for a 1 point profit at 4704 but with the market up overnight and again this morning my average short now is 4712!!  Actually thinking of just building this short more and more as the market is ripe for a pullback here! 



#7 12SPX

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Posted 22 November 2021 - 10:08 AM

Wow and just like that brought it up to an average 4720, sit on that for a bit!! 



#8 dTraderB

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Posted 22 November 2021 - 11:29 AM

2nd hedge NQ LONG
16605 limit

#9 dTraderB

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Posted 22 November 2021 - 12:06 PM

CLOSING 5 of 82 QQQ PUTS opened earlier today. Will close another 5 or 7 if it continues to drop....
Holding 32 SPY PUTS
1 ES HEDGE LONG
2 NQ HEDGE LONG
35 VXX CALLS

WILL close a few VXX CALLS

#10 12SPX

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Posted 22 November 2021 - 12:33 PM

Hmmmmmm debating putting  on a profit stop, 4719 but will sell right above.....