LP asked
What happens if all the retail buyers become sellers? Do you think that the institutions are going to step up and buy NVIDIA stock that is up 160%?
Hello LP. My honest answer...retail buyers almost never sell the top and buy the bottom. See attached chart. They (we) are trained like mice by the sell side to do the opposite. In history I have never seen a headline that reads "main st sells stocks at highs creating wall st bagholders". Hypothetically if somehow every individual investor got the guts to sell their stocks near all time highs, guess what wall st sell side would do? They would use the media and their super computers to cause prices to increase, legistlation to penalize selling of 401k early. More tax breaks for not selling. Then they would sell their shares. Then the public would still be bag holders.
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Summary of the day
Breadth
644 new highs
333 new lows
Nasdaq New Highs/Lows Highs 24 vs Lows 116
42% advancing 55% declining
50% below 50 day ma
38% below the 200 day ma
Stuck out
Strong
Weak
What to watch
Watch mag 7
Watch yields
Credit card delinquency rate (1991-Present)
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