A stock can look expensive, stretched and overdue for a pullback, yet still keep moving higher. That is one of the hardest lessons for traders who short strong names because the valuation looks too high or the chart looks overextended.

This episode breaks down why strong stocks can remain expensive for longer than short sellers can remain patient, solvent or emotionally stable. A high price alone is not a short thesis. A rich valuation alone is not a timing signal.

Why expensive does not always mean weak

Markets do not move only because something is cheap or expensive. They move because of positioning, expectations, liquidity, earnings revisions, momentum and narrative.

A stock can trade at a premium because investors believe the company has stronger growth, better margins, a larger market opportuni ...