Skip to main content

Hot Mess, a definition

March 30, 2021

One thing they don't teach you in the books is the old Technical pattern, "The Hot Mess".

You know when you look at a chart just churning sideways....

Probably trading near flat moving averages....

Below overhead supply....

There's no real edge in either direction....

Traders are getting chopped up in what feels like quicksand....

That, my friends, is a Hot Mess.

It happens.

It's always happened.

Learn to recognize them. Get smaller when they arrive. Treat them with the respect that they deserve.

Don't be stubborn and pretend a chart isn't a hot mess, just because last year it wasn't.

There's a time and a place for everything.

Sometimes we want to focus on making money. Other times we want to focus on keeping our money.

From any sort of tactical perspective, our defense has been on the field so we've been calling more plays from our defensive playbook. That will remain the case until the market proves that's no longer a good idea.

There are stocks to buy, but we're being extra selective.

I know things can get lost in the shuffle, so I wanted to take this time to catch you up on some of the more recent important posts:

Be sure to read: Anything Can Happen. It's a great reminder. Also, a look at major current market trends, which is Why Technical Analysis works.

In case you missed the latest Commodities Weekly Report, there's a lot of good stuff in this 55-chart Deck. Don't miss this one ever!

Of course, the 2-to-100 Club. Are you looking for the next $100 Billion Company? We are!

And finally, corrections happen. So what? It's a normal part of market cycles. We discuss it all in, It's Happening. With Staples making new relative highs again today, these defensive trends remain in place.

So what's on your mind?

What stood out the most to you in this weekend's charting?

Let us know!

Filed Under: