Quote from: drays on September 16, 2018, 12:17:23 AM

Interesting... I have a side-question, most probably stupid one. Trading and markets always were out of the sphere of my interests, so pardon my ignorance... But your statement raised my curiosity.

You generalize *stocks*, *commodities*, *currencies*, *cryptocurrencies*... Well, I understand your view on cryptocurrencies - I assume you short everything with "crypto-" as a prefix

, but what about the rest?
Are you long on all stocks and short on all commodities? Aren't different stocks behaving differently, and significantly rising when others go significantly down?
Or it makes sense to trade them as a "herd" doing the same movements at the same times?

Crypto is an ecosystem and it seems to go down/up as a whole. That's understandable as it all represents a common set of technologies and applications (to some extend; the diversity is getting much bigger, but that's different topic). But stocks..?! They represent different companies working in completely different areas of life, operating in different parts of the world. Did the world became so small and tied together, so they are also making an ecosystem..?

The stock market is a significantly larger ecosystem. So yes, on an individual level, there are some stocks in a bull market, whilst others are in a bear market. Likewise, some markets can be in bull market, whilst others in different geographical area could be in a bear market.

For example, the majority of stocks in the US, i.e. DOW/S&P/NASDAQ indices are currently still in a bull market; however, it appears the German DAX is in the early stages of a bear market.

To add to the complexity, there can be nuances; for example, Facebook appears to be in the early stages of a bear market, whilst Twitter may still have further upside.

P.S. Speaking of commodities, the waves currently unfolding in Bitcoin could be developing an alternate scenario similar to commodity markets; I have a surprise soon and a lifeline for the hodlrs, stay tuned! Wink