If I wasn’t trading stocks every day I’d probably would’ve lost my mind by now, seeing what’s happening in this country. Being able to micro fixate on markets and treating it as a puzzle is my favorite thing to do, even the set backs. The market is never the same, although there are similar currents running through each body of water. But the puzzle is dynamic and it’s wonderful to sit here trying to figure it all out.
The only way you could begin to hate markets is if your risk profile is out of whack with your investments. In other words, if you’re unable to afford losing 20%, you should not have a leveraged portfolio with a beta of 2.5. There was a time in my life, in my 20s, when I’d place my entire account in 2 or 3 stocks. The subsequent result of that era, even though I was a fantastic trader, was tragedy. I wrote two books about the ordeal.
I’d like to remind you that life is long and we have time to create a prosperous financial situation. There will be periods of slump and tumult, but they’ll be followed by ebullience and joy. The key is to always survive so that you can participate in the next big rally. There are many things about this country that sucks and the divisiveness is next level. However, our markets are still #1 and if you’re paying close attention and truly understand them, you can use them to improve the quality of your lives.
At the onset of trading, I was short the semis. I covered those shorts for profit and went to cash and now hold just $FSLR, +35bps for the session. Although the Dow is up strongly, there is some weakness in the NASDAQ. It’s a peculiar tape, with 69% breadth and outperformance in the Russell. It would suggest a focus on domestic companies, and we are also seeing materials and oil trading up. Bitcoin is, once again, dead in the water.
I am going to wait until later to start nibbling back into the market. My intent, as stated last week, is to produce incremental returns until the end of June.
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