How to Identify the Market Cycle Top - 10 Great Signs The Top Is In

How to Identify the Market Cycle Top

Here are 10 great signs on how you can identify when the market cycle top is in. From rapidly rising prices to euphoria and more, here is what you can learn what to watch for when the economy is in peak bull mode.

This is part one of two as we cover some of those tell-tale areas that define when the bulls are wildly on the run. You can find part two, How to Identify the Market Cycle Bottom - 10 Great Signs The Bottom Is In here.

This list is by no means exclusive, but it can serve as a barometer on just where the bull cycle timeline might be from the rise of influencers to a grand ending with everyone becoming a euphoric financial expert.

10 Great Signs The Top Is In


1. The Rise of Social Influencers 

Social media influencers will abound in a bull market. You'll even hear about your third cousin who has become a YouTuber making speculative investment videos about the next big thing.

The first sign of nearing peak bull is when social media use has risen to all-time-highs and new influencers are taking to forums, YouTube, Twitter, Reddit, and the comment section of your favorite blog advising others on the "next big thing" set to explode.

2. Everyone Has Major Credit Availability

Credit availability is the amount of a credit line to which a borrower can access. This includes lines of credit from banks and even credit card accounts. Credit availability indicates the amount that remains after subtracting the balance. And in peak markets, credit availability is rampant and unrealistic.

Be on the the lookout for ever-increasing credit offers and loan offers from your bank or other subjective financing outlets when there is "too much" credit available in the system.

3. Numerous IPOs and Startups Launch

Next up, you will see an influx of Initial Public Offerings in the market and a growing amount of startups launching to solve even the most minor of problems. During peak bull, every idea will be trying to get in on the action and pulling investor funds with it.

4. Rapid Price Hikes In Everything

An economic system that experiences an influx of money on a major scale may begin to experience inflation and/or price gouging. There is also a factor where there is a period of "everyone" has money, for price hikes to be a normal part of the bull cycle.

Suppliers will charge more for their products and so on. When you feel like the price of everything is going up, start paying attention to where you are in the economic cycle.

5. Booming Luxury Markets

This one tends to be obvious, but the real detail comes down to even when employees on the lowest of payrolls are driving rental luxury cars and sales of Porsche, GUCCI, and Louis Vuitton are breaking records. When there is too much money in the system, everyone is rich, or at least appears to be.

6. Euphoric Feelings Abound

This time is different! You'll hear it on every street corner and read it on the front of every investor newsletter. Countless millions will be experiencing euphoria as their bank accounts increase and retail investors start planning early retirement.

Euphoria often hits at the absolute peak of the market cycle top.

7. Very High Trading Volume

If your favorite stock or crypto token/coin has a high trading volume that is rising rapidly, it means there is of course very high buying pressure. Investor demand pushes the prices higher and higher until capital runs out, and someone ends up on the losing end of financial musical chairs.

When you feel like prices in the market will never stop going up and volume begins to reach new highs, the bubble pop that alerts the bear might just be around the corner.

8. Financial Media Is #1 In Ratings

This one has always been a great factor to judge by. When the top TV show ratings list are financially themed, the market could be topping. From a dedicated "how to invest" series on your local news airing at the gym while you workout to a new reality show based on stock traders - it might be time to pay attention where the market cycle is.

9. Everyone Is Quitting Their Job

When it feels like everyone you know is quitting their job (or making plans to) the bull market might be peaking. When an economy becomes flush with capital and abundance is everywhere, it is easy for many retail investors to feel their jobs are no longer needed. The bear market can change that feeling quickly.

10. Excessive Leverage Trading

Leverage trading involves borrowing money to invest or trade with or increasing the number in the availability of shares or coins/tokens involved in a trade beyond the number you can actually afford. When every trader you know is using 1:500 leverage, then it might be time to take a break from the markets.

Enjoyed this List? Now it's time to identify when the bottom is in! You can do that here.