The risks are still mounting. The downtrend was compressing, and the speculative stocks that hit ATH's with the last rally, are still sitting below their peaks.
Capital has been rotating out of tech for weeks, haven't y'all seen? Tech going down, and industrials, Cons Disc, and utilities all inching higher?
CAT, GE, GEV, FIX all made ATH's in the rally, smart money was moving out of tech.
The reality that the valuations have gotten out of hand, and the earnings is not returning yet is still looming over us, but the amazing MAG7 earnings are giving investors a reason to feel euphoric.
But the cyclical leaders, the speculative giants are still sitting below ath, still failing to breakout of their downtrends
I don't see the risks that caused the market to compress, and sell off tech changing with these earnings, I still see a hawkish fed, I see 5yr bonds still inching higher every day, i see earnings still not showing up in the speculative stocks we all love to gamble on.
Sure, we are in greed and euphoria, and some of us made a lot of money in this rally!
But what happens after earnings? when the noise stops, when anxiety starts to hit investors and fear takes over? The fed and congress will be in recess.
Risks are here, and investors are finally starting to look at truly how much money the hyperscalers are spending.
Shady accounting that keeps the debt under the noses of those who don't have the time to read and sift through the dense information statements can only hide it for so long.
I don't think there's gonna be a crash, don't take me for a fool.
But i don't think these valuations are sustainable, and the sellers are still in the market, i'm sure.
Getting ready for a downtrend, i'm a gay bear till December and im ready to rumble
PUTS on relatively weak stocks.
Postions -
IREN puts
FCEL puts
BE puts
Short MRVL & ARM
wanna be gay? lets hang.
Edit: Not financial advice, just sharing my thoughts and bias 😄