A few great charts to share from Doug Short of Advisor Perspectives today. The first batch is on margin debt and the second on market internals. These are two things I have been watching lately and continue to concern me.
Remember that 5 year bull markets to not end over night and the topping out is a process that can take months. Also keep in mind that it has been a long time since we’ve had a 10% correction.
Getting aggressively bearish here is not necessarily the way to go either, but we need to keep an eye on some of these data points and at least be aware of where we are in the market cycle. September and October are typically the weakest months of the year for stock market performance.
MARGIN DEBT CHARTS
MARKET INTERNALS
Hi Gavin
I just watched a youtube presentation by Bill Williams of Profitunity Trading group, he said that past performance or data were irrelevant for predicting the future movement of prices in the stock markets or other securities instruments. Well instead of I tried to explained what he said , you all can watched this video at https://www.youtube.com/watch?v=bNxt298VVOw.
Very interesting and valid points when he said why 90% of traders, investors or analysts using TA indicators losing money if they can really predict the future prices. He mentioned about the chaos theory too using physic science. Enjoy the video and reflect over it.. It made me re-think many billion of times on how people want to make money from trading.
Hi Lawrence, thanks for sharing, I will check it out.