Remember the ongoing joke this summer about McDonald's stock putting in a historic double top - that amazingly resembled their infamous golden arches?
Here's what that looked like back in July as the stock was hitting new 52-week lows:
My argument at the time, and still at this point, is that we're in the midst of an ongoing bull market.
If the argument you want to make is that this bull market was/is over, then placing a bearish bet on something like McDonald's might make more sense.
Keep in mind that $MCD is one of the largest components of the Consumer Discretionary sector. This sector index was/is on the verge of completing a massive 10-year massive topping pattern relative to the S&P500.
At the time, and still, I've believed that if this is still an ongoing bull market, then these massive tops, whether in $MCD or in the Consumer Discretionary Sector itself relative to S&Ps, would NOT complete - because those are not the types of things you see in bull markets.
You would have to believe the bull market is over and a new bear market was/is about to begin, in order to justify that bearish bet.
We discussed it at length at the time, that the bet was the exact opposite - that rotation into Consumer Discretionary was likely to come in - because this is a bull market and those are the types of things that happen in bull markets.
And so take a look at McDonald's now. From new 52-week lows to new all-time highs in just a few months.
This is what happens in Bull Markets:
Are you paying attention?
We want to reverse engineer what a continuation of the bull market looks like, and which types of stocks are likely to see rotation in that environment.
That's what we saw here, and that's what we've been seeing for over 2 years now.
My suspicion is that when we do enter into a bear market, I will likely be telling that to someone on live television, or at a conference, and they will think I'm crazy.
That's how this works, you see...
I've been around the block a few times.
And throughout 20+ year career on The Street, I've watched a lot of people come and go.
I can spot them a mile away - both the talented and the talentless.
It's all about longevity.
How long can you last?
This is why my go-to Day Trader is Kenny Glick (a.k.a. The Warlock) from HitTheBid.com.
He's been doing this every single day even longer than I have, but as a day trader instead of my generally longer time horizons.
It's impressive that he's been able to survive this long - and thrive!
As someone who has had a front row seat to this world for over 20 years, I can tell you that there's no one better than Kenny at finding the biggest moving stocks every single day.
If you're like me, and you're too busy to sit there looking for the biggest and fastest movers of the day, every day, to try and profit from that action, then come join me and Kenny this afternoon (Wednesday 10/16) @ 2:30PM ET to discuss exactly how he does it.
