How do you like the Trump Bubble now? Since the election the stock market has soared with the excuse that we are on a, "Great Rotation", into stocks. Bonds have started to implode, and they figure all that money is going to jump into stocks at record highs? Well, good luck with that idea, as I have never seen such a bunch of twisted fundamental logic, trying to explain this market rally. We have already been in a "Stock Mania" since the 2011 bottom, so this hype is just another name for a, "New Era". When these words get repeated, then the markets usally end up crashing.
One analyst says that the markets are more expensive now than 1929, 2000 and 2007! Yikes, that could work in a bearish wave counts favor!
As long as I can get an alternate to test, then I will do it as this rally, sure can give us a false crash before it charged up yet one more time. It's a low chance, but it would last until the markets drop to the bottom trend line. With the speed that these markets have moved on, nothing will surprise me once the gyrations start again. The VIX has already lifted off the bottom, but it can still decline a bit again.
In the worst case this market could just gyrate around and stretch into early 2017, but this may only happen if the USD cooperates, by crashing.
Sooner or later, the market traders will all try and take profits at the same time, kicking off a mini selling panic.