Originally Posted by displacedinMN:
What is happening today?
Worry or profit taking?
The market is extended from the 50 day moving average by a decent amount as indexes hit all time highs between last week and this week.
10 of the past 13 days have been green.
I worry what building some of you will jump off of when the market “corrects” by more than 2-3% in a short time. A 10% correction may kill some of you, let alone a 25-50% bear market. [Reply]
Originally Posted by KChiefs1:
Hell no I’m hanging on this rocket ship to the moon!
I might sell if it got down to $30 but I’m still holding.
I don't mean to be flippant, but are you at all worried that it will try to "go to the moon" via shortcut path through the center of the Earth? At this point, that seems like a very realistic possibility for a stock where the price is artificially high and not supported by good fundamentals. For your sake, I hope that does not happen. [Reply]
It's important to follow where the market is in relation to moving averages. There will be red days but the entire trend is still up. It's simply small corrections/profit taking that you see. Here's the SPY chart since March to help explain. Blue line is 50 day moving average.
Short term changes will NOT be linear. Short term changes also only matter to traders. If you aren't a short term trader, check the trend 1-2x a month and leave it be.
Originally Posted by lewdog:
I worry what building some of you will jump off of when the market “corrects” by more than 2-3% in a short time. A 10% correction may kill some of you, let alone a 25-50% bear market.
Relatedly, my worry is that we have an entire "generation" of "investors" who have learned that fundamentals don't matter and that big risks are better than sound strategy. That works somewhat in a long-term bull market, but if things go south, the first things that go with it are going to be those risky investments.
I'm rooting for the AMC guys, but a stock like that is always potentially 24 hours away from dropping into the single digits. [Reply]
