My current view is that the market is extended but like I have said many times to our members, just because we/I think the market is over extended doesn't mean it wont run up about 20-30%. With the FED continuing to voice its support, it is no surprise that we can continue to see a rise across the board. With investors flocking to Bitcoin(BTC) and other crypto currencies as a way to possibly hedge against another down fall, we have seen price more then double in the past 30+ days.
My view:
My current view is that the market is extended but like I have said many times to our members, just because we/I think the market is over extended doesn't mean it wont run up about 20-30%. With the FED continuing to voice its support, it is no surprise that we can continue to see a rise across the board. Money is currently deemed "cheap" at the moment with rates near all time lows and no change in the next 18-24 months we could possibly see this market continue to move straight up. The dilemma most are currently running into now is, buy all times high and hold for the next few years or wait for a pull back. I am in the latter part of this group.
As I mentioned above I am a pull back trader, that is how I like to trade and how I view the markets. There is no wrong or right way to view the markets but I personally cannot/will not buy all time highs. I will be looking for pull backs in a large basket of stocks/ETFs & Crypto. If you would like to hear more about this comment down below saying so.
With investors flocking to Bitcoin(BTC) and other crypto currencies as a way to possibly hedge against another down fall, we have seen price more then double in the past 30+ days. With possibly no end in sight with some calling for BTC to hit 50-75 thousand in the next month or two. If you look at previous moves like this we normally see a 15-30% pull back, if you have not gotten in at this point this "could" be a great entry level. I am personally waiting for a pull back and think one will happen in the coming weeks to months.
In summary, I think the markets are all over extended in terms of long to medium term investing. For day trading this normally makes a great time to trade as any one who is currently experiencing FOMO will be jumping in and jumping in big. This is due to the fact many are still pumping certain stocks and BTC. What many trades need to learn is to be patience,there will be more entries there always are and there always will be. Will we see a drop as big as we saw in 2020, I think not unless something major happens again.
Be patient and wait for your entry, it will come!
Patrick
Gorilla Futures
Written 1/10/2021