What will the end of the rally look like.The SMCI gives us a good indication of what the end of the rally looks like.
The SMCI has gained as much as 66% over the three-week period, and the difference between the weekly highs and lows has been very, very large.
Since then, the stock has tumbled more than -45%.
The stock has since rebounded slightly like a rubber band, but has returned to a downward trend.
This is typical of the lead stocks coming to the end of the rally.
SMCI's earnings are amazing.
Sales growth is 200% and EPS growth is 368%.
But what's wrong with the stock price?
This tells us that a lot of stocks are coming to an end regardless of their earnings.
That's because many professional investors sell their shares before earnings get worse.
But this is not to say the end of SMCI.
The SMCI may be able to build up enough energy over a long period of time, and then regain its former glory. I don't know when that would be.
