Traders and investors are having the time of their lives. Stocks are at their historic all-time highs. The Fed wine is flowing like water. The easy money booze from the BOJ, ECB and PBOC is poured into the Fed punch bowl to keep it well stocked. Traders drink cup-fulls of the intoxicating liquor and buy stocks like madmen.
Timmy Trader brags that he has placed millions of his clients money on the long side expecting huge gains by Christmas. Aunt Martha, known for her frugality, has thrown all caution to the wind. She was afraid of missing out on the opportunity of a lifetime so yesterday she placed her entire life savings in AAPL and AMZN stock like the nice young man, dressed in a suit and tie, suggested on television. Over 20 central banks are implementing monetary easing policies around the world. May the Lord have mercy on our souls.
The CPC put/call plummets to 0.65 not seen since the end of January 2018 when the stock market top was placed and crash began. Back then, the SPX fell from 2875-ish to 2530-ish, a -12% crash, in only 2 to 3 weeks. Stocks should top out now and the SPX should fall about 40 to 150 points maybe lots more.
What do you think will happen? There's Timmy Trader over by the office water cooler. He is bragging to young and pretty Melissa that he owns Apple and Amazon shares and other high-flying tech companies and that the stock market has nowhere to go but up for the next several months. Melissa looks bored and is more concerned about her chicken noodle soup in the microwave. Sell your longs and go short. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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