26Dec1:27 pmEST
If I Told You This, Would You Believe Me?
September 16th, 2024.
That is the last time that shares of Reddit, seen below on the updated daily chart, tested their 20-day simple moving average (orange line).
The 20-day moving average is a short-term reference point for swing readers. As an example, NVIDIA has not tested its 200-day moving average since January 2023, but the 200-day is obviously a much longer-term reference point, even though that is an extreme stretch in its own right with no test.
Still, trading at a forward PE of 234, it is hard not think that RDDT is one of a basket of pure bubble stocks in this tape. To go nearly three and a half months without a 20-day moving average test is almost unheard of, especially as the stock price keeps going vertical.
If this is not the swan song for the liquidity-fueled mania looks like, then I am not sure what would qualify at this point, on top of seen alt coins in crypto take off, such as the estimable "FartCoin," and the "Hawk Tuah" girl's coin scandal.
Elsewhere, nuclear reactor plays are still acting well. And even with natural gas gapping down today, some of the natty-related stocks are holding up well.
Overall, the push higher in rates is being largely ignored by tech and the bubble stocks during this holiday period. I strongly suspect that changes in January, especially considering housing seems to already have clearly gotten the message.