Stocks doing so well during a global pandemic crisis. What now?
The mentality of the top companies are the world is... "We're gonna recover this pretty easily". Especially now cloud/digital/internet based tech doing so well. Even capital-intensive companies are doing all right (DOW / S&P). I'm looking for a short term short at these levels, most likely will double top in my opinion. Once that happens, swap over to long-term long positions and rebalance consistently according to newer market conditions.
COVID-19 has given us a real unprecedented turn of events. A million new factors has entered the markets and anyone telling you its easy to make money during these times is tricking themselves with outcome bias. Overall larger equities will do fine, life will go on. Anyone with a short strategy is playing a dangerous game. US market indices (DOW JONES, SPY, NASDAQ 100) DOES NOT REPRESENT THE US ECONOMY OR THE MARKET. You must understand this. Technical analysis gets such bad rep because A LOT is built on poor usage of market basics. TradingView is a great platform but if anyone can give information/advice then obviously its not going to be the highest of quality. (Hey you don't have to listen to me).
Back to why shorts are a bad idea anything past a monitored, researched, controlled, short term plan. The US comprises about ~12 million companies, ~6000 public companies (99.95% are private companies) and the LARGEST ~500 companies comprise the S&P 500. Shorting the largest most resourceful companies in the world that are not only going to survive COVID-19, but continue to grow post COVID will only resort to losing money. News is complete BS theses days, the outrage on bailouts and buybacks due to many not having the financial/economic education needed to understand how the world can collapse if these companies/organizations go under. Why would you trust anyone nowadays on the internet for how to invest/use your money?
Not saying equities cant crash or come down. There are better shorts out there than shorting the SPY.
Long term investing has and always will be a good strategy for 99% of non-professional investors. This little rant here hopefully gives you a little more insight.
COVID-19 has given us a real unprecedented turn of events. A million new factors has entered the markets and anyone telling you its easy to make money during these times is tricking themselves with outcome bias. Overall larger equities will do fine, life will go on. Anyone with a short strategy is playing a dangerous game. US market indices (DOW JONES, SPY, NASDAQ 100) DOES NOT REPRESENT THE US ECONOMY OR THE MARKET. You must understand this. Technical analysis gets such bad rep because A LOT is built on poor usage of market basics. TradingView is a great platform but if anyone can give information/advice then obviously its not going to be the highest of quality. (Hey you don't have to listen to me).
Back to why shorts are a bad idea anything past a monitored, researched, controlled, short term plan. The US comprises about ~12 million companies, ~6000 public companies (99.95% are private companies) and the LARGEST ~500 companies comprise the S&P 500. Shorting the largest most resourceful companies in the world that are not only going to survive COVID-19, but continue to grow post COVID will only resort to losing money. News is complete BS theses days, the outrage on bailouts and buybacks due to many not having the financial/economic education needed to understand how the world can collapse if these companies/organizations go under. Why would you trust anyone nowadays on the internet for how to invest/use your money?
Not saying equities cant crash or come down. There are better shorts out there than shorting the SPY.
Long term investing has and always will be a good strategy for 99% of non-professional investors. This little rant here hopefully gives you a little more insight.
Once it double tops and retraces until reversal is somewhat confirmed, then enter over to long term long positions and consistently rebalance/cost average your positions.
Markets will pretty much keep rising, a higher bottom is a near certainty.