Why I Haven’t Gone Bearish
In this video, I explain how I use a century-old market philosophy to see the market from a 40,000 foot view and why that kept me long today in the market.
In this video, I explain how I use a century-old market philosophy to see the market from a 40,000 foot view and why that kept me long today in the market.
We’re long crude oil and the Russell 2000. I am looking closely at the 30-year, XLF, XHB, and IEO. There are many sectors and sector “generals” to watch in these markets. Gold, the dollar, and the Euro are also looking interesting when (not if!) the tariff rhetoric gets taken down a notch — and I explain why that MUST happen.
Micron (MU) news hit the market hard. Add a Chinese injunction of solid state hard drives and memory sticks to the trade war and you get a sell-off. What are the implications?
Here’s how a trader stays opportunistic: How does price action play into our hands? What are the larger trends and narratives? Are they pointing in the right direction? Price action, tech, and fundamentals provide the checks and balances.
There are few trading situations worse than being on the wrong side of a cycle move and not even understanding what it is and why it’s destroying your positions.
The Financials ETF, XLF, has been a market I’ve watched closely since the impact of financials affects the S&P, Russell, and Dow. The 2nd round of the bank stress test was not too kind to Goldman (GS) and Morgan (MS), that is, until the FOMC stepped in.