The bond market is another item
to keep in mind here...
An individual can always do a quick check of LQD, JNK, and HYG
to see how well they feel it's going.
LQD showing weakness.
All the "new traders", the Robinhood accounts created just this year...
One report I had read said there had been over 6 million new accounts .
If they had put an average of 5k in, that's 30 billion dollars chasing every little dip.
I work in accounting, doing consulting, helping small businesses get organized,
and now "back organized" to the new environment, helping them get their books back in order, their cash flow and forward projections re-focused, etc...
I've been in a handful of offices in the past 2 months and now every bookkeeper and clerk has an account. They spend their spare time throwing out market comments...
They're all infatuated with AAPL, MSFT, and TSLA, and they're fully optimistic that there is no risk and no downside possible. They sell because they get itchy, and buy back any 2% dip.
They don't comprehend what a bear market could be, or even a SPY or QQQ check of the 200 day.
It reminds me of a Great Depression story I heard, about the big investment banker, who sat down to get his shoes shined one day, and the young man who shined his shoes, not knowing who he was, he was giving his customer investment advice... The investment banker looked around and knew it was out of control.
He knew when many of the conversations of the common citizens revolve around the market, it's bad and a bubble. Human nature and history repeats itself and we're there again...
The common citizens are completely positive AAPL will split and soon be back to 500, and they'll soon be rich.
Anyway... LQD and the bond market may be a better "overall health indicator" here, just like IWM, RSP, and MDY.
