The Nasdaq is at record highs this morning!
Who woulda thunk it?
.... I did.. But I did not think it would come so fast. Of course when the market was plunging in December it was over for all bullish market participants. And yet, like every other dip since March 2009, the December lows ended up being just another great buying opportunity.
With stocks back at or near record highs those same uber bears are out telling you the world is going to end. And yes sadly the world is going to end.... I covered that recently:
However, those same bears today at record highs were saying roughly the same thing 4-5 years ago.
At $SPY $145 Hussman was saying the market was setting up for a 40-50% crash.
At $293.... the $SPY would now need to crash over 50% just to get back to those crash call levels. And then another 50% from there for him to be right....
I think having caution is good. The market is risky. No doubt about it, we will get another swift correction. Markets will fall, fear mongering will reach a fever pitch, and the world as we know it will hang in the balance.... and then, just like December, we will bounce. And bounce... and rally... and before you know it the market will be back on its feet again, with sights at fresh record highs.
Thats what its been doing! It's been in rally mode. Trending higher. For over 10 years!!!
This is what a trend looks like! ---->>
The trend is your friend. It's like a wave. You ride it. You don't fight it. If the trend is up. You ride it up.
If the trend is down.... well... I'll let you answer that. Where would you ride this chart?
Yes... it is just the inverse of the current $SPY chart. It's all about perspective.
So those uber bears would want to be long that last chart. Would you?
We can cite a million reasons why the market will drop. And trust me there are plenty of excuses to sell. But at the end of the day PRICE is all that matters. And the two charts above represent PRICE. One is telling you to buy and the other is telling you to sell.
You make the choice.
See you in the chat room.