One of the most remarkable philosophical pieces of all time is Plato's "The Allegory of the Cave." It's commonly applied in various ways in today's society, making it one of the most significant analogies to come out of the field.
The story follows a group of people chained underground as prisoners, only knowing the wall in front of them and nothing else.
Behind them is a fire, and between the prisoners and the fire is a walkway. As people move on the walkway, the prisoners see the shadows cast on the wall.
Look, I don't know. I just follow Price. They are all just letters and numbers to me. If it trades, it's liquid, and there's a good technical setup -- that's all I need.
It just so happens that this particular company is engaged in creating Chinese internet content. Ok.
But man oh man do I like the potential reward-to-risk setup here so let's get straight to the point...
The Investors Intelligence Bull-Bear Spread was unchanged last week, remaining just beneath the level that in the past has signaled full embrace of equities and the opportunity for sustained stock market strength.
The strong negative correlation between stocks and the US Dollar has been consistent since 2016.
When the Dollar is weak, stocks rip. End of story.
Look at how well stocks did in the 4th quarter while the US Dollar Index had its first 3 straight months of losses since the end of Covid, which if you recall sparked the greatest 52-week period for returns in the history of the stock market.
I still think it's important to focus on the Dollar, so here are some potential levels of future interest: