Short Stocks Now...Or Wait? Market Wizard’s Jack Schwager: 'Dangerous Level' Here
Speakers
Jack Schwager
— Author, Market Wizards
Summary
Jack Schwager is long the S&P 500 but warns of extreme valuations and uses close stops. He discusses measured move targets, new generation traders, and the ongoing relevance of human traders versus AI.
- Schwager is long the S&P 500 with very close stops.
- He identifies a measured move extension near 7850 as a potential exhaustion point.
- He notes valuations are at historical highs, meriting caution.
- He describes traders in his new book who turned small accounts into fortunes.
- Some new generation traders shorted small cap pump-and-dump stocks.
- He believes human traders will remain relevant because market rules change.
- He emphasizes risk management as key to trading success.
Trade Ideas
Long S&P with close stops
Jack Schwager is long the S&P 500 based on technical bullish patterns (breaking of curvature, consolidation flags) and assumes continuation until proven otherwise. He uses very close stops to manage risk given extreme valuations, and has a measured move extension target around 7850 on the June S&P futures as a level where he would turn neutral or negative.
Up Next
This The David Lin Report video, published June 04, 2026, features Jack Schwager discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Jack Schwager · Tickers: SPY