Author: Chris Hood
More economic data and more, potentially irrational, exuberance.
We saw quite a rally yesterday.
After a gap-up and quick flush, the market went into nearly a full day’s bull run. It was the classic gap-and-go pattern.
There were some massive pullbacks intraday but, the direction was definitely up.
Many traders doubtlessly got taken out by the algo stop-hunting early in the morning.
I don’t have high hopes for a market recovery this year.
More than likely we’ll see more downside.
I don’t think this highly publicized inflationary decline of 0.1% doesn’t mean that prices are going down. They just aren’t going up as fast.
And a good portion of the decline is due to energy and stabilizing food prices.
The Core CPI which includes everything except energy and food actually went up.
Inflation is still with us.
Trade of the Decade: The Most Critical Stock to Own Now
Mr. X identifies “the most important company that you’ve never heard of…” and how you can take advantage of it to reap potentially life-changing profits.
Despite my own bearishness, and the dire warnings issued by economists and fund managers every day, you have to ignore these assumptions when you put on your trades.
Remember, we’re not investing.
We’re playing the game of short-term options for some quick gains.
Each day when you open your brokerage platform, take a moment to clear your mind.
Forget your assumptions about the market.
Turn off the financial news channels.
Take a deep breath and relax.
The only things you should be focused on are your indicators, charts, and trading plan for the day.
Sure the S&P 500 may collapse another 20% from its current low, but when (and if) that happens is truly unknown and unknowable.
We are in a bear market, and if your general outlook is bearish then you might only be looking for short plays.
Do that and you miss out on the gains from the massive rallies like those we’ve just had.
Remember that your mind can play tricks on you.
If you have a strong bias in one direction or the other, you’ll find reasons to ignore indicators that go against your opinions.
When you’re hunting bears, your eager eyes see them everywhere.
…even as they’re when they’re charging at you with their horns.
So offload your mental baggage each day and look at the market with fresh eyes. Then watch your results improve.
PS – Billionaires like Warren Buffet, Ray Dalio, and Carl Icahn have invested hundreds of millions and even billions of dollars into oil. My friend, Chief Investment Strategist, Adam O’Dell believes he has identified THE top oil stock of 2023 that could crush the returns of Exxon and hit 100% gains in the NEXT 100 days. Find out how you can profit from this new bull market here.