2021-12-28

Tesla

Hmm.
Stock market volume is too low to trust the rally. I highly suspect the Fed will drop a bomb on the markets come January too. The December lows look far away in price, but I think they could only be a day or two away whenever the market peaks. I do not think this rally will be sustained, no matter how high it goes. It could go up in early January though if it induces retail FOMO like we saw in January 2018...
I think this chart is the analog what we've witnessed since March 2020:
Outside of an unforeseen (black swan) Goldilocks scenario, stocks are either going to be wrecked by a serious taper and rate hikes or they are going to be wrecked by collapsing corporate margins amid soaring energy prices, labor costs and junk bond yields. At the top, all roads lead down.

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