Don't Believe The Market Volmageddon Recovery Hype
The US Markets have all recovered at least 60% of their losses from Volmageddon in early February. However, I sold my 2018 Leap Options yesterday before price hit my $50 target in Micron Technology and $50 target in Square.
Micron Technology, 30% return
Square, 31% return
When I look at the S & P 500 (that represent the US markets), it recovered over 75% of it's February losses. However, Amazon, Microsoft and Netflix have made up approx. 50% of the gains year to date on the S & P 500. 3 stocks that represent 50% of the gains isn't a healthy market.
When I look around the world, the recovery is worst.
Dax
FTSE 100
Nikkei 225
Nifty 50
Shanghai Composite
I don't think this is the end of the uptrend, but feel it's an opportunity to start taking some profits as I indicated in the below post.
Any further upswings in the market will be a grind. The easy money over the last several years is over. We must be cautious and prepared to hit the sell button when the Markets eventually trend down longer term. We can also make money when the Markets turn down by following certain indicators. See my 1st post of several in the coming weeks below.
Until next time.
Once the FANG stocks stop pumping to ridiculous valuations, this will all come to an end...at least until they turn the printing presses way up again.
Yes, QE4.