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Could This Be A 'Suckers' Rally?

By Chris VermeulenMarket OverviewApr 15, 2020 04:09PM ET
www.investing.com/analysis/could-this-be-a-suckeers-rally-200521720
Could This Be A 'Suckers' Rally?
By Chris Vermeulen   |  Apr 15, 2020 04:09PM ET
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Everyone I know who is not involved in the stock market or has little knowledge about it is calling me and asking what stocks, indexes and commodities to buy because everything is so cheap and dividends are juicy again.

Just look at the market sentiment chart, and price cycles that the stock market goes through, and listen to my talk below while reviewing these images. It’s not rocket science, but the lack of education on the financial markets coupled with the force of greed to make money and miss out on the next big bull market has everyone getting suckered into this dead-cat bounce, also known as a bear trap, bear market rally.

A subscriber to my market video analysis and ETF trading newsletter said it perfectly:

“It always intrigues me how many amateur surfers get to the north shore beaches in Hawaii, take one look at monster waves and conclude it’s way too dangerous. Yet, the amateur trader looks at treacherous markets like these and wants to dive right in!!” 

Richard P.

I have to toot my own horn here a little because subscribers and I had our trading accounts close at a new high watermark for our accounts. We not only exited the equities market as it started to roll over, we profited from the sell-off in a very controlled way.

Could This Be A 'Suckers' Rally?
 

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Could This Be A 'Suckers' Rally?

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Comments (11)
Laine David
Laine David Apr 18, 2020 7:17AM ET
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Reminds me of the bitcoin rally. New highs mean hard lows around the corner.
Stefon Walters
AgapeGrace Apr 16, 2020 12:31AM ET
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Excellent job Chris. Hats off to you and your team’s analysis. My story is just the opposite unfortunately. :/
Stephen GIordano
Stephen GIordano Apr 16, 2020 12:02AM ET
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quantitative easing is propping this market up not sure if it can head down again even as ridiculously overpriced this market seems to be relative to current earnings but that's the fed
Adamo Nals
Adamo Nals Apr 15, 2020 10:16PM ET
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He is spot on and it’s rare for a millennial to be speaking this way. This is the biggest suckers rally ever. We will walk in and the market will be down 15 to 20% any day and we are going to retest the March Lows. And lower. It doesn’t take a rocket scientist to understand we’re in a depression. And we are not opening up in two weeks. The economic fallout from this is jarring. Just be prepared for a complete washout any day when algorithms take over
Peter Wolf
Peter Wolf Apr 15, 2020 9:36PM ET
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Yes the real sucker is the person who invests in these newsletters ! Been there; done that .
Justin McNaughton
Justin McNaughton Apr 15, 2020 7:44PM ET
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could it be? it totally is. PEs are off the charts now, won't be at these levels for years.
Joe Blittersdorf
Joe Blittersdorf Apr 15, 2020 7:44PM ET
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Off the charts high I assume. Stocks will retest March lows in my opinion.
Ray Steed
Ray Steed Apr 15, 2020 7:31PM ET
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when are you suppose to buy? when things look great and its priced in.
Dan theman
Dan theman Apr 15, 2020 7:09PM ET
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I think we had the panic
Dan theman
Dan theman Apr 15, 2020 7:09PM ET
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March 22th total liquidation..not going back..we are much further in your cycle already..
Robert Stoltz
Robert Stoltz Apr 15, 2020 5:36PM ET
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I totally agree here, except when certain stocks are undervalued. Fear maybe strong, but so is money.
John Lorelia
John Lorelia Apr 15, 2020 4:27PM ET
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Amateur here. Except the great USA will cease its place as the worlds largest economy, grab a life vest and dive right in to the equity market!!! Whats there to lose?
 
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