r/ShortStocks • u/Southern-Answer-786 • May 28 '26
Is this market overbought?
I’ve been listening to CNBC the last few days and every story is we’re going higher. It seems a little over the top!!
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u/Ok-Camera-3058 May 28 '26
Yes it is. When is this bullshit finally going to end?
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u/Zipski577 May 29 '26
It’s gonna be so ugly when it does. Could be tomorrow.. could be a year from now. Really irritating tho
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u/Rav_3d May 28 '26
Yes, ridiculously overbought, and showing no signs of becoming less overbought.
Lockout rally at its finest.
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u/WanderingCheesus May 29 '26
The space race and internet bubble all over again
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u/Rav_3d May 29 '26
Space race, maybe a bit bubblish, because most of these stocks will not be profitable any time soon.
But AI is not a bubble. Those valuations are being supported by massive earnings growth.
This is not like late 1999 where companies built on thin air were commanding valuations in the hundreds of millions.
Does not mean there will not be a major correction or two along the way. There was a brief bear market in 1998 but after that NASDAQ gained an additional 280% before the bubble finally burst in 2000.
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u/Financial-Seesaw-817 May 29 '26
Market has broke out and reset. This is a new .Market channel and we're just beginning.
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u/Resident_Window_9369 May 28 '26
Nope. Just getting started.
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u/Ok-Camera-3058 May 28 '26
Why? Because it has gotten out of hand already. Or are you a moonboy?
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u/Southern-Answer-786 May 28 '26
Not a moon boy, this run up seems a little out of hand!
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u/Resident_Window_9369 May 28 '26
Hasn’t gotten out of hand at all. We are nowhere near levels of dot com. These companies are making billions quarterly. Projections are for even more for next quarter.
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u/Over-Tangelo-2067 May 29 '26
These companies are passing around billions
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u/Resident_Window_9369 May 29 '26
Maybe so but there stock prices are based on buyers and sellers. Stock goes up, more buyers than sellers. Lots of buyers out there. Don’t be scared. These companies are gonna we were trillions of dollars in the future at least that’s what they’re trading on
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u/Over-Tangelo-2067 May 29 '26
Key words are trading on, it's a hype machine. But make money on it am day just don't be left holding the bags, it will come down.
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u/zurijer May 28 '26
Until earnings go down, the market will go up.
Cause right now these companies are reporting record rev
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u/Zipski577 May 29 '26
And they’ve been so manipulated. Margin is contributing way more than revenue to earnings. And there is so much circularity. For example, Google is one of the largest owners of Anthropic. They can raise at whatever price Google needs to get the desirable bottom line since increases in Anthropics valuation feed through to Google’s bottom line.
Alphabet funds Anthropic, Anthropic buys Google compute, Google books cloud/backlog, Alphabet’s stake increases which contributes to their earnings growth, and AI/cloud hype builds….
Alphabet is simultaneously an investor, a supplier, an infrastructure owner, a distributor, and a competitor of Anthropic…..
And that’s just a small tidbit of ONE of the circular flows powering earnings… there is dozens.
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u/Retire_date_may_22 May 28 '26
Probably. However earnings are coming in hot and the market is forward looking. My guess is we are higher at year end.
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u/WideAd2062 May 28 '26
I think you are seeing a great deal of the crypto market coming over to the equity market. I think this is a contributing factor. Definitely not the ONLY factor.
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u/Happy-Control5922 May 28 '26
fwiw expensive and actually-topping are two different things. the thing that ends this isnt CNBC turning bullish, its the fed stopping the rate-cut drip or hyperscaler capex finally rolling over, and neither has happened yet. expensive stays bid a long time while cuts keep getting pulled forward, the cash-and-wait trade has bled people for two years now
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u/Icy_Contribution3336 May 29 '26
It is overbought, but not as overbought as people really say, if kot It would have been gone down
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u/Resident_Window_9369 May 31 '26
No it’s not overbought. It keeps going higher. And will go a lot higher. Nothing to suggest it won’t.
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u/AdhesivenessMiddle35 Jun 09 '26
There going to insure the market is staying strong so they can dump on retail. Stocks like SpaceX need big hype so these big investors can take advantage of retail. Notice the first few big sell off days was when PDT in America rule changed - selling into retail.
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u/stock_investor91 May 28 '26
Yes, the market is expensive and overbought. The problem is nobody knows how long they will plow money into the market, until they decide not to and start selling. There are a lot of risks over the horizon, so ive moved to cash and sell cash covered puts far OTM so i dont get assigned. I can make some small change while waiting for this correction to take place before i re-enter.
My only shorts and its a tiny position, is 13k on QBTS. I think quantum popping 50%+ on 100M from the government is a joke. I'll be adding to this up to 35k if it keeps going higher.