Ok I'll say it, we are in a bubble! The problem with bubbles is that they get better and better until they don't, and when they don't its a massacre. So enjoy it while it lasts! Will it last into 2018? Almost certainly. Will it pop in 2018? Maybe. No one knows, but I want to see interest rates alot higher, and the actual effects of fiscal stimulus felt, before I will call a top.
Anyone who wants to call a top here based on charts should simply look at bitcoin and ask themselves where the top was. I do think we are in for a lot more upside here, especially now that congress is finally getting its act together. With the passage of the most significant fiscal stimulus in 30 years, the markets should have support to rip higher into 2018. The bars and houses in DC Republican homes must have been quite the party on Friday night, after the bill finally passed at 2am ET.
Disclosure: I own calls on SPY, IWM, QQQ, and many other stocks.
