UPRO outperforming TQQQ ended Rotating back to tech.
fundamentals really donât matter today, and neither do valuations. Todayâs market is driven by virtually infinite liquidity coming out of the Federal Reserve. All of the dollars the Fed is pumping into the financial system have to go somewhere, and many are finding their way into tech stocks.
I donât know when the party ends. Frankly, I donât know how itâs lasted this long in the face of a pandemic that doesnât seem to be getting any better. But with no obvious end to Fed stimulus, the bubble might continue to inflate for a while.
Today, this market is favoring high-growth tech companies irrespective of earnings. CRWD stock certainly fits that bill, and I see no immediate catalyst to reverse its move.
Who cares? Buy to your heart content till Fed reverses course i.e. suck back liquidity.
âI have to keep reminding myself that the internet bubble lasted for years.âŚand so itâs difficult to have patience and recognize that thereâs still a lot of moneyâ that can be made, the âShark Tankâ star said.
Well said. Well said. Just because is excessively overvalued, donât mean you donât buy. Just because is a huge bubble, donât mean you should sell.
Thinking aloud: Mr Market has gone crazy, should I close all position?
âŚâInsanity does not mean itâs over. Insanity just means can we please just stop comparing it to 1999, because in 1999 a lot of really bad companies gained a lot of market cap. Here, a lot of unbelievably great companies are gaining market cap at a pace that youâve got to give them a speeding ticket,â Cramer said on âSquawk Box.â
CNBCâs Jim Cramer said Tuesday that âitâs time to admit that these moves are crazyâ after large gains by some of the marketâs biggest tech stocks pushed the [Nasdaq Composite] to another record high the previous day, but he is not predicting a reversal.
Cramer is like any other analysts, after the factâŚ!
BTW: This is, directly or indirectly, not a stock nor investment nor financial advice, just participating the discussion.
Cramer is just an entertainer. I remember him fighting the rise from the March bottom almost every single day, finally gave up and turned 180 degree 3k Nasdaq points later. He said many different things to have his base covered so he can always go back and cherrypick the right calls after the fact.
New weekly unemployment insurance claims rose by more than 1.4 million last week, with the level of new claims increasing for the first time since mid-March. Last week, new claims were slightly above 1.3 million.
Jim Cramer, host of CNBCâs âMad Money,â says investors are holding tightly onto their positions.
âThereâs a lot of people who are being hogs, pigs, they should sell some [positions]. We had to sell some Amazon from my charitable trust because we were the Amazon fund, we had to sell some Facebook because we were the Facebook fund. We refuse to sell Apple because you have to own Apple, not trade it. But I think a lot of us are stuck thinking about, âWhat else am I supposed to buy?ââ
âThe ordering of the closure of the USâs Chengdu consulate, along with a ratcheting up of the anti-China rhetoric amongst US policymakers, has prompted further weakness as we come to the end of a week, which saw European stocks push up to their highest levels in almost five months,â said Michael Hewson, the chief market analyst at CMC Markets UK.
Trumping up anti-China rhetoric will increase the probability of winning the election? Outcome of this election will be telling.
News Headlines: Stocks fell on Friday, adding to a sharp decline from the previous session, as tensions between the U.S. and China keep rising and tech shares struggled once again.
Our sixth sense (Logical power) and news/media headlines are the issue.
We have been trained to think logically (or sentimentally) about the market by news/media.
Remember, my sayings : Market moves UP and Down on its own way, but news/media assigns an attractive story to it for their own circulation purpose.
What if market turns positive end of the day? What these new monsters say for that? They are scaring people as if China-USA is on the verge of war !
IMO, News/media is fooling the public by providing wrong (sentimentally right) reasons for market action.
Like this, people are fooled, by news/media, during recession times that Bay Area and USA are going to be bankrupt.
BTW: This is not a stock nor investment nor financial advice. There is no direct or indirect hint or anything of that sort. This is updated for discussion purpose. People must know the truth, not swayed by news/mediaâŚ
âThe key difference between 2000 and today is that in 2000, the largest of the large tech stocks traded at much higher valuations than the mega cap tech stocks do today. Thatâs not where the bubble is. Thereâs a group of stocks that are the ultra expensive that donât make money or are just starting to make money that trade at sky high valuations because it is predicated on the fact that in three or five years weâre going to earn a lot of money,â Slimmon told Yahoo Finance in an interview this week.
âŚhot brands like Peloton (PTON), Nikola (NKLA) and Vroom (VRM) fall squarely into the category Slimmon mentions â they have garnered media and investor attention, but provide a nebulous profit picture at best.
One of the stocks that aligns with the gross margin theory is Chegg.
If you look at the financials, youâll see that COGS more than reduced by half in 2018 (significant increase in gross margins). The stock went from low teens to 70$ today.
Rotating back to tech.
