Lead by trumpeconomics and the lack of new tail risks to hedge, US equity markets are going parabolic lead by panic buying which can be compared to black Friday herd behavior.
The only difference is that people are over-paying instead of waiting for the sales !!
One should never snob valuations (…) and a fantasy-built future…
nb: next events are Draghi tomorrow pm and Yellen next week which could be game changers… or not
Last but not the least: some thoughts…
A) to go long now is a bit late but euphoric moves can last ; place stops
B) to go short is dangerous; this move is strong
C) vol is low- use options – i would buy some some January 2017 -3% strike puts on the SP500 etf proxy SPY US to play a back-to-mean move…
Source : investing.com, internet