"But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions" - Alan Greenspan
Welcome to the 'Week in Review'.
Wow. What a rally. Yeah, I had the link to the Rally Monkey. I don't pull that out on days that the rally makes sense. I pull that out when the market has thrown all caution to the win, and we have an unreal, unbelievable, no one was expecting "crack induced rally".
So after our usual market review, we'll talk about that rally, and others in this week in review ...
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The markets can start a feeding frenzy. When and where that feeding frenzy will begin? It's hard to tell, and thus hard to trade. Just remember, your bias, and your entries, should be two different things. Trade the tape, and be "Mr. Spock".
But remember in the background, the bias. Governments have taken on incredible debt, and unemployment is still through the roof. A deflationary trap has set itself up within the GDP of the United States. Much of the money supply in the form of credit is disappearing, and there is still and incredible 'debt black hole' out there.
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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.