The battles that count aren’t the ones for gold medals. The struggles within yourself–the invisible battles inside all of us–that’s where it’s at. -Jesse Owens
Right now its about not losing your mind and not losing more money. Its not about being a hero, revenge trading your account to pixie dust or trying to be a hero by “catching a bottom”.
Stocks aren’t being sold, they are being liquidated, and rotations rule the day.
There is always a bull/bear debate going on. Lately though its has morphed to the question of whether or not we are actually in a bear market. That’s a bit different than just opining on certain levels during an uptrend.
I don’t know if we’re going into a recession, but there is enough talk out there about it, so peeps get nervous and sell anyway. Things have to happen to the yield curve before I jump into that camp. I do know though that this market is really long in the freaking tooth.
Is it a bear market now or just a healthy correction? Lets face it, the S&P has more than tripled since 2009, so is it really a big deal that the S&P has pulled back about 11% from all time highs? I say not at all, but it doesn’t mean we cant got down another 10%.
Is China done going down? They’re off next week, probably looking for new and creative ways to cuff their data.
Europe is about ready to fall apart again, but everybody just talks about LNKD crashing. There is a liquidation in growth right now and its a “get me the hell out at all costs’ tape. Tech and biotech. So many players were taken out in body bags last week in both.
The dreks of society caught bounce last week. I’m talking gold, silver and mining things. Bull markets are never led by these sectors just so you know. They are selling the high multiple stuff and buying stuff with no multiples. The insane logic of the stock market, but that’s how it goes, and we don’t know how long it will last.
Crude oil has become like Europe a couple of years ago. Now every headline about a production cut moves the commodity. We’ll know when we know, the rest is just speculation. Banks should be shot, trades only, and short has worked for the financials. No refi’s, no spreads to make. Wells Fargo laid off crap load last week because of this. Banks were great back in the day when the traded at 5-6 X times earnings and had a fat 10% dividend. What they yield now isn’t a dividend, its an insult. They are trading right where they should right now and should probably trade a lot lower.
Anyway, Upsidetrader Premium Members continue to outperform this garbage. To request the last few months performance email: [email protected]
Have a great weekend.