The Other Side of This Bull Market – Momentum Monday

There will be warnings as this bull market ends. They won’t come from your TV. Actually, everyday the warnings are blasted from financial television.

The real warnings will show up in the price action. You can keep the TV off.

Companies will eventually disappoint. Stocks will start falling on good news.

Facebook and Nvidia trade at 15 times sales. Of course it’s possible that earnings, sales and traditional metrics are outdated, but when the markets turn those metrics will come back in vogue. They will be the way of gauging how far stocks might fall.

In the meantime, as long as the indexes continue to rise in the face of sinister behavior like that of Equifax and Wells Fargo, do not apologize or be shy riding this trend.

How good has 2017 been?

The returns of 2017 vs other years in the S&P says it all.

Every Saturday Callum Thomas does a great ‘chartstorm’ on Stocktwits. He offers a deep dive focused on the health and sentiment of the markets.

This chart stood out this week:

Some other interesting charts this week…

3M – the post-it-note and sharpie boom continues

GE – while they are pathetic, the stock did manage to reverse off a miserable run down after they said admitted they just suck. My friend JC says the price action is interesting…

Baidu’s stock performance (search in China) is beating Google and the rest of the world…Google’s sale of their Baidu stock at the IPO may go down as one of the worst early sales of all time.

Here are the largest 12 stocks to double this year. The themes…Gaming, China, Education, Biotech.

The biggest proof that Donald Trump has destroyed Twitter shareholder value lies in the Chinese copycat Weibo performance…compare the two stocks. Politics is a shitty business. You can’t just say that China is bigger. You can definitely say the Weibo’s management and strategy have been better than Twitter’s.

PS – I remember my parents saying don’t get so close to the TV…which makes this tweet from Stocktwits really funny.

PSS – The most interesting, sad and disturbing read of the week is this Esquire piece on the Opiod crisis and the family behind most if it.


Also published on Medium.