Charts of the Day - Trading Journal (08.05.20)

The markets closed green today and the SPY is less than 10 points from all time highs. Believing or not in this rally it is real in terms of the numbers. Chart above compares this recent market draw down that started in March and how quickly it has recovered compared to other draw downs. Author of the diagram does add in the remark that they are assuming the current crash has yet to fully unfold. We shall see....

The fomo in the market can be visualized by most popular tech stocks, Facebook, Google, Apple, Amazon, and Microsoft. There combine P/E ratio is over 30 and have not been this high since any recorded time they have existing. One note worth mentioning is that the fewer stocks that make all time highs in a bull market the more likely a top is set.

As markets regain to all time highs the retail traders "Households" are piling into it every more. Probably a good example of smart money versus dumb money. Most retail traders lose is because they play the dumb money.

This last chart is showing the current yield in 10 year near record lows and breaking down. The only time in its history that made lower yields was march of this year when yields got down to 0.2%. It will be interesting to see if current rates can surpass the low made in March?

Posted Using LeoFinance