Courtesy of Read the Ticker.
When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.
This is when a seriously over valued market is screaming at you.
Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT).
To see when water company’s (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The chart below suggest the coming 2020 money boost from the central planners should keep stocks up until 2019/20. Must be an election year, hmmm!
Of course after the recent gold move the SP500 may end up 10% by Dec 2020, but in gold terms it may be flat or down, meaning gold moving higher and faster than the SP500. Of course SP500 moving higher while gold moves higher is good for gold stocks, on a relative strength basis.
The short story is: Happy stock market days should continue into 2020. But watch out for a massive top in the Dow Jones Utility Index as history is likely to repeat as a bear market arrives.
Subject to either of:
1) US/Iran war pushing oil going to $100 and a world recession follows very quickly.
2) Super nuts money printing, Zimbabwe style and Dow Jones to $50,000
3) Deutsche bank blows up Lehman style.
Dow Jones Utility Index History Rhymes.
Click for popup. Clear your browser cache if image is not showing. 
Cycle chart confirms channel forecast top.
Click for popup. Clear your browser cache if image is not showing. 
Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination
of Gann Angles,
Cycles,
Wyckoff and
Ney logic
is the best way to secure better timing than most, after all these methods have been used successfully for 70+ years. To help you applying Richard Wyckoff and Richard Ney logic
a wealth of knowledge is available via our RTT Plus membership.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote…
…“After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this: It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!”…
Jesse Livermore
..”It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”..
George Soros
..”The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.”..
George Soros
..”The first rule is not to lose. The second rule is not to forget the first rule”
Warren Buffett
…”The four most dangerous words in investing are ‘This time it’s different’ “…
John Templeton
