How to trade a euphoric market

Such extreme bullish sentiment in US stocks is a gift to swing traders, says John C Burford. Here, he employs his charting methods as he goes in search of the market-top.

Today, I will cover the US equity markets via the S&P 500 index, which has been making new all-time highs of late.

Euphoria is rampant in the stock market there is no other word for it. Sentiment readings are almost off-the-scale bullish. Here is just one:

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.