Whether it is stocks or cryptocurrency there is currently a burst of optimism in price evaluation.
Who would have thought bitcoin priming up to potentially hit $40k while already settling in at $35k as I type this post. Can this optimism be stop?
The fundamentals as I have repeated countless times in my journal entry is not reflecting what the market evaluation of many of these stocks that have appreciated. Again TSLA tomorrow will likely open at all time highs when it only took after hours of Morgan Stanley to upgrade their price targets on the stock.
Taking notes on this euphoria and seeing how it all plays out for the month of January. For most January markets suffered a loss for the month when first day of the year was red. Not predicting here but using statistics from past events to predict what may lie ahead in the near future.
Another great chart indicating the bullish gamma that is existing in the markets.
Notice how only late 2019 was the gamma higher than where it is at now. Fundamentals out the window and let the asset prices soar.
One last piece of real news as of now it appears the Georgia Senate run-offs are in favor of the Democrats.
Does it really matter if Democratic control the Senate or not? IWM is soaring over 1.5% in futures markets while QQQ is down similar amounts. Value in and High growth out. Will be fascinating to watch how all this plays out tomorrow.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
