The Dow Jones Index busted through the Resistance today like the Kool-Aid man.
Let me zoom in there a little closer:
This looks like we're at the final leg of the stock market bull run. My best guess is that they keep it alive for another 3 or 4 months tops. I could be wrong and this thing collapses tomorrow morning. Heck, all we'd need is Deutsche
Bag Bank to announce their anticipated bankruptcy, and everyone panics like it's 1929.
In case the term "blow off top" is unfamiliar, here is a Steem post from two years ago by @cryptographic that explains it well. https://steemit.com/trading/@cryptographic/what-s-a-blow-off-top
How high can some stocks go? Who knows. The potential gains are minimal, and the risks are super high - something that only gamblers and people with money to burn are going to be willingly involved in. Once the credit really starts to freeze and nobody can cash out, that's when we're going to see the inevitable plunge that will leave people jumping out of windows, or in front of subway cars, their life's work destroyed and their future erased. They had every opportunity to get out, but the FOMO and the greed was too much. They just needed that last few percentage point gains for the year, just another hit of their drug before stopping.
At this point it is clear that the stock market and the economy are moving in opposite directions. It's like a roller coaster ride, where the front car is already part way down the hill while the back car is still going up. The front car is the economy, and the back car is the stock market. We already know how it ends, it's just a matter of how fast the back car reaches the top and starts to fall with the rest of the train. We could be at that point right now, or it could top out in a huge blow off at some point in the next few months. My guess is the latter in the early parts of February, which was my previous prediction as well, but I'm certainly not putting my money where my mouth is on this one, as I try to avoid FOMOing at the mouth when possible.
thanks for dropping by.