AFRM showing the first signs of an overbought market and....About a month or so ago I was in a walmart self-checkout line on the west coast of the U.S. and noticed it had Affirm as a payment option. this is the good ol, buy the rumor, sell the news. Whales already were buying the stock lows, knowing an impending credit crisis is looming and the consumer will just find new ways to spend, and AFRM was the first of its kind. it was a covid darling, straight through the ground, now forming its cup and handle, and participating in what will be yet again a major financial/credit crisis, as consumers decide to BNPL on EVERYTHING they can't immediately buy. But it's the holidays man, come on mannnn I'll use it just this once; after all my credit is shot anyways.
credit card payments will cease to be made, as buy now pay later is a debit purchasing program. credit payments will fall to the background of important issues. why? americans going to spend. period. I myself have been victim to this. There is also a multitude of other BNPL Programs, Afterpay, Klarna, Loes, Apple, Nearly every marjor company is begging to implement some form of BNPL. It is the purposeful defualt of the american consumer and economy.
AFRM was the perfect example of buy the rumor sell the news because the news was already there if you simply know what Peter Lynch suggests when picking a stock to invest in. "Look around you." AFRM was already there. (Rumor) and then the press release sent it through the roof, priming it for profit taking and shorts. crazy times we live in.
