Former Resistance = Support
For those of you who have been around here a while, you remember how aggressively we were shorting stocks back in October of 2018 (see here).
When we got back to those same levels in early 2020, we were sellers once again (see here).
Among other reasons, there was resistance at those levels. We were much better sellers than buyers, and this is before we knew anything about COVID.
So I know some of you are new here and you think I might be a permabull or something. But let me remind you that I couldn't be the furthest thing from that.
Honestly, I don't give a shit what the market does. The S&P500 can double from here or it can get cut in half. I couldn't care less.
I just want to be in the right direction of the underlying trend.
The economic implications of what the stock market does is NOT my problem. I just don't care.
Gold can double from here, or go to Zero. Doesn't matter to me.
Bitcoin can go to a million, or zero. Again I don't care.
What I've learned over 20 years of doing this, with 15 of those years being active on Financial Social Media and Television, is that I'm regularly called a permabull during bull markets. But then I'm regularly called a permabear during bear markets.
I'm referred to as a gold bug when gold prices are going up and we're buying it. And I'm a gold hater when gold prices are going down and we're selling or avoiding it altogether.
The truth is, I'm not a perma-anything.
I really just don't care. I care about more important things like my family, my health and the Miami Dolphins.
You're welcome to care. You're welcome to worry about things you have no control over like inflation, or the fed, or whoever the president is.
I don't have the time or desire to bother.
I'm only an investor to make money. If you're an investor for any other reason, I would encourage you to see a therapist because you're probably very confused.
I know what I want. I'm in the market for one reason and one reason alone. And that is to turn a profit. Period.
With relative strength out of Small-caps, we can use this in 2 major ways.
#1 - obviously look for small-cap stocks to own
#2 - as a trend identification tool. If former resistance from 2018 & 2020 turned into support, and prices are above that support, then what bear market are these people talking about?
Maybe they're looking at their charts upside down. Or blindfolded perhaps. I don't know.
But we're seeing uptrends - a lot of them.
What are you seeing?
What am I missing here?
Let me know what you think!
- JC
What You Need To Know Now
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