Saved by the Bell, Futures Up
Updated: May 1, 2021
Yesterday, I mentioned buying some securities as a hedge against assets, especially with the market meltdown on Friday. The Monday after each Friday meltdown is usually a tell for what comes next. Futures are up a LOT (thank you, Germany).
With futures rebounding, this generally means the uptrend since the 2020 crash will continue unless something suspicious is going on. Hedge Funds have a history of keeping prices hiked up pre-market to offer the mirage of a rebound. With the attack on Wall Street by WallStreetBets, they may be considering some ploy to recover their losses.
I'd still be a bit cautious around the market right now, especially since Fed President Powell mentioned he is not pumping the markets up- sounds hard to believe, even though it's "true". The Fed's balance sheet is continuing to increase, especially on repurchasing treasury notes/bonds.
The question I always ask- would I go all in here? If it's a no, I tread cautiously. Keep one thing in mind; prices are increasing rapidly. It's starting to look like the dot-com-bubble. Those who purchased at the top of the 2000 dot-com-bubble did not recover their gains until 16 YEARS later.
Notice: This does not constitute financial advice.