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Bearish arguments tend to attract many economic observers and market participants due to their contrarian nature, in addition to sounding more rational and intellectual than wildly bullish prophecies. Bears usually consider themselves to be above the fray, in terms of speculating on lowly stocks that may be rapidly appreciating in value. When the market sells off after a sustained uptrend, there always seem to be countless calls for a deep correction. Of course, those calls are usually forgotten when the market shrugs off the selling and quickly turns back up higher. It is only when we finally see that deep correction that the bears are lauded for their astute analysis and rational thinking.
Currently, the broad market has seen several weeks of improved price action. Each dip, such as this morning’s, appears to be serving as nothing more than a buying opportunity. As I wrote earlier for 12631 subscribers, it is crucial to understand in which type of broad market you are operating, which is why I make it a point to put in the work to do a video market recap every day.
While it is certainly a stretch to say that many traders are bearish here, my larger point is that is can become quite easy to panic out of longs even in a trending market. However, when you consistently see a market that opens with weakness but closes with strength, it behooves you to understand that there is a fine, but crucial, line between respecting your stop-losses and panicking out of your positions simply because of a weak open.
Beautiful. Bottom line: Bulls and Bears share the same objective. That is, raking coin. I simply can’t imagine any Bears making a dime since mid-December. A huge opportunity has been missed on the long side.