Originally Posted by
Krugminator2
9
To see how this works, here is a magic trick. XLE is the energy sector ETF. 100% of its components are currently above the 10 day moving average. It might keep going up but it will likely give back any gains. of the next couple of weeks and then there will be a Business Insider or Marketwatch article talking about inflation fears easing or recession or Russia.
That worked as well as possible.
Originally Posted by
Krugminator2
I am very leveraged long.
In my opinion and only my opinion, thinking in essentials is better. Washed out breadth and sentiment, steep yield curve and 90% down days followed by either 90% up day and/or two consecutive 80% up days is all that matters. Everything else is noise. I think this is pocket aces. No guarantees. No law against stocks dropping from here. But in my opinion one of the better opportunities in the last couple of years.
This not so much. That said same view.
Two of the five lowest tick readings were in a four trading day stretch.
If the market doesn't go up big over the next 12 months, this will be the first time since 2008 where the crowd was right and panicking paid. 2008 was basically the only time where nothing worked. Maybe this Fed tightening is like 2008 and maybe there is some crisis brewing like with crypto but the odds are things will be unicorns and candy canes and the masses will lose again from panic.
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