Melt-Ups are Often Followed By Substantial Corrections
I agree with this Barrons article. The market is absolutely overdue for a correction. This melt-up is getting a bit ridiculous. The market just keeps climbing.
That being said, don't sell the rally just yet. Things can stay overbought for a long time. And this rally has been showing no signs of slowing down just yet. Often the biggest moves happen towards the end of a rally.
Short positions are getting eaten alive. Even though things are severely overbought, wait for the real selling to start before grabbing any shorts.
I should say that if you think there will be a significant correction this year, then premiums on VIX contracts are around the cheapest levels they have been in quite a while.
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Waynewx : What you said is obvious, the hard part is being able to profit when it happens.
SpyderCallOP Waynewx: Timing is the hardest part. And it's everything. After a rally like this, I think the correction will eventually be noticeable enough for everyone to get a piece. Even if it is just a little piece.
Ultratech : too bad this will keep climbing...after a correction it probably rips immediately anyway o noo
SpyderCallOP Ultratech: That has been the pattern for a while now. Just buy the dips until an official downtrend starts.
Ultratech SpyderCallOP: holding forever son...
SpyderCallOP Ultratech: That strategy works also. I just like to make money both ways.
Ultratech SpyderCallOP: this will always be bullish and sp will really have to tank to go past where I bought from. if it did same behavior as any other stock randomly plummeting only difference is sp is known for returns year after year the only concerning risk factor is the etn wiping like fng did