Are You Too Weak To Overcome Your Ego?

JC Parets
September 26, 2021

This is what happens when you ignore price just because you're too weak to overcome your ego:

Since every commodity on earth has been going up in price EXCEPT for gold and silver, perhaps that's just further information that gold and silver are NOT commodities after all, but actually just a couple of shitty currencies.

Look at Gold relative to actual Commodities making new multi-year lows:

Meanwhile, the CRB Commodities Index just went out at new 6-year highs.

This is the exact opposite experience that gold bugs are having:

And as many of you already know, the CRB Index is very heavily weighted towards Energy.

So with Crude Oil flirting with potentially taking out that $76 level soon, what does that mean for the CRB Index?

What does that mean for Energy stocks?

What does that mean for risk appetite in general?

Take a look at this massive base in Cheniere Energy $LNG.

The way I learned it was, "The Bigger The Base, The Higher In Space":

If $LNG is above those former highs from 2014-2015, we have to be long this stock.

It's really that simple.

And if Energy and Actual Commodities (not gold) are ripping, then what does that say about inflation?

Therefore, what does all this mean for Interest Rates?

Did you notice the 10yr Yield is trying to break out through that key 1.4% level?

You can see this turn in the Relative Strength of Financials relative to REITs as well.

So price is suggesting that we should be looking for opportunities on the long side. Managing risk responsibly, of course, but spending more time looking for longs than shorts.

Premium Members can check out the Hall of Famers list and trade ideas for our favorite setups in the Large-cap stocks:

First we build the universe, as you can see here above. Then we dive in and hand-select the best risk vs reward propositions.

What do you think?

What are you seeing out there?

Are you letting your ego get in the way of profitability?

How many of these clowns have been wrong about stocks for 10 years because they'd rather lose money than just go see a therapist?

It's not that hard to admit you're wrong.

It's easy.

If you're wrong, admit it, and move on.

Rip the band-aid off.

Trust me.

It's not worth the aggravation.

The one thing the market guarantees us is more opportunities.

But if you have your head up your ass, then it's impossible to see them.

That's just science.

JC

 

 

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