"Efficient Markets" lol
In fact, small-caps outperformed large-caps on Thursday by 450 basis points. According to our friends Ryan Detrick & Charlie Bilello, that's a 6 standard deviation event.
If markets were actually efficient, and that burton malkiel guy wasn't lying about everything he ever said, then 6 sigma events wouldn't happen as often as they do. They should come around once every 500 Million days.
It happened yesterday.
Because markets are not efficient.
The random walk theory was just a bad theory that some weird academic blatantly made up years ago.
He said in his book that he's never met a rich technician. But that's not because there aren't any rich technicians.
It's just that all the rich technicians don't want to hang out with him.
Because why would they?
We don't like liars who hurt people for their own selfish gain. Princeton can have him. They seem to be big fans of his bullshit.
Meanwhile, here's the Russell2000 Small-cap Index going out at new 52-week highs yesterday:
I don't want to harp on the lack of efficiencies in this market.
But I do think it's worth pointing out that the market continues to prove that these sociopaths claiming markets are efficient are not here to help you.
You'd think that Malkiel guy would come out after all these years and admit that everything he wrote in his book was wrong and maliciously misleading.
But he has not.
Because he's an asshole.
Anyway, Sector rotation is the lifeblood of a bull market. We've seen it for 100+ years. We have the math. It's NOT a theory. It's fact.
And we're seeing it again now.
Remember last week we discussed the most bullish thing that can happen to this market?
It's happening:
Towards the end of bull markets, you see important sectors like this completing tops.
During bull markets, no where near the end, you tend to see buyers coming in at support in the most important sectors like this one above.
So what do we do about it?
We're buying stocks very aggressively.
We have been the past couple months.
But now there are more names to own, and different ones that are working, which we'll be going over one by one this Monday.
Premium Members make sure to REGISTER HERE if you haven't already.
We'll get going LIVE @ 6PM ETF this Monday July 15th.
And if you're not already a Premium Member, you can join us RISK FREE here and join us this Monday.
If math means anything to you, then that means you have nothing to lose. So come check it out.
Let me know what you think!
JC