What's working in this market?
What's not selling off as much as you'd think it would be?
These are the types of questions I like to ask during environments like this.
I've seen this many times before. I can tell you that the assets showing relative strength in this market will likely be the leaders during the next recovery.
In the meantime, below overhead supply is still the key theme right now, particularly for U.S. equities.
It has been since the Dow and S&P500 lost their key levels and were unable to reclaim them. Remember the Nasdaq100 lost these levels a month ago.
This is what we discussed last week during our LIVE conference call for Premium Members of ASC Research.
Are there opportunities right now from the long side? Yes.
Does the market have some work to do if these ideas are going to work, or even get triggered for an entry? Yes.
I'm not getting too many questions about the current market, which makes me very impressed by you.
In prior cycles, I definitely remember more questions and concerns coming into the queue.
So kudos to you guys for following your plan. It's inspiring to see.
If you're new around here, first of all: welcome. Make sure you keep in mind that risk management is always priority #1. (See: Risk Management 101)
And position sizing is the cheat code. (See: How to think about Positioning)
In a past life, I may have cancelled my family vacation to Miami, or perhaps spent more time in my hotel room obsessing over markets.
But I'm 43 years old and have been doing this for over 2 decades. I used to live that way. It wasn't fun.
And that's why these days I make sure to have a plan. And more specifically, a very detailed plan of exactly what we're going to do, no matter what happens in the market.
I learned this from our Chief Options Strategist Sean McLaughlin. No one ever in my life has been able to teach me the importance of having a plan like my man Sean.
I owe him a lot. If it weren't for a combination of my past traumatic experiences in the market, and him teaching me over many years how to build a trading plan (and stick to it), I would probably still be that guy alone in his hotel room starring at markets, not knowing what to do.
Now, I get to just flip to the trade, see what the plan was, and execute accordingly.
I am telling your for a fact, it makes me a better investor, a better father and a better husband. Having a plan and sticking to it just makes life better.
Thank you Sean.
And speaking of our killer team at Allstarcharts, I want to give a huge shoutout to Director of Research Steve Strazza who absolutely nailed this move.
While I was certainly aware of the risks and managing them accordingly, Steve has been pounding the table of just going outright short across the board and taking advantage of the upcoming spike in selling.
He was absolutely right.
That's why Steve has been the Director of Research here at Allstarcharts over the past 5 years, and why he's run the analyst team that you see here kicking ass every day.
We owe a lot of our success to Steve Strazza. And I'm not just talking about the success we've had becoming one of the top Technical Analysis Research firms of all time. I'm talking even more selfishly than that, in helping us making the best decisions for our portfolios as possible.
I get a lot of the credit around here, as you guys know. But you may also have noticed that I try to do my best to give the credit where it is due along the way.
And I probably don't even do as good of a job of that as I should.
Let's make something clear: Steve earned his flowers (and more importantly all that money he's been making).
From Steve's note yesterday: "We are already up 260% on our homebuilders short, 450% on banks short, and 360% on our short biotechs trade."
These are serious numbers, particularly in a down tape.
If you're interested in getting Steve's Breakout Multiplier trades, on both the long and short side, you can get access to that here.
Be smart in this market. There's no need to be a hero and go in without a plan.
Put together your strategy, make your plan, and then stick to it.
That's the best thing I can tell you. I wish someone had taught me this earlier in my career.
It makes life better.
Cheers,
JC
