Who is Still Buying?
It’s a curious thing buying at the top, but thin volumes tell us there is not much enthusiasm here. I hate new highs-I hate the ridiculous valuations such as a P/E of 30 against decades at 15 https://markets.ft.com/data/indices/tearsheet/summary?s=UKX.P:FSI This means that the FTSE consitutents would take 30 years to buy back their shares. 90% of the CEOs will likely be dead before then!
Should We Really Care?
I do not own any shares, but if I did I’d be selling here. History shows the market always drops from a new high. A smart trader might close out and consider buying when the market is lower. It’s not a profit until the cash is in your bank. Fear should rule here, not greed. Sadly the opposite mostly holds true, and most people sell at the capitulation stage.
Options, Sell High, Buy Low or Take Another View
We can trade volatility, time decay, relative pricing, direction or no direction,locked in pricing.Credit or debit trade. A share price is a one dimensional thing. It may be priced relative to the index, but it’s just a buy or sell. There is ‘pairs’ trading -like forex,(US$ against GB£) one stock against another. May the force be with you on that. An options chain gives us a world of possibilities. A little maths knowledge helps, but like SuDoku, it’s a mindset. Nothing compares to options. I cannot say this often enough-90% of people do not understand risk. Don’t be part of that herd.
