I’m having difficulty trusting the rally in the smalls. It was obvious yesterday what was happening, rotation out from big caps into the smalls. And now we have a continuation of sorts with the $IWM up nearly 1.5% on top of yesterday’s 3.5%, which is especially painful when considering this was exactly what I was looking for.
If you missed the past two days and now look on from the outside where everyone is happy inside and celebrating their success, you have two choices in front of you.
1. Jump in and have faith this rally is legit and all of the small cap piece of shit stocks that did nothing for a year enliven and continue to grow.
2. Ignore it and allocate into the areas of the market that has worked for the past year, minus two days.
The other risk is this small cap set up is the top. It’s a wild thing to suggest and I am 20% serious. But we know the shit rises to the top when markets exhaust themselves. If that were true, I find it hard to believe it would ‘top’ after just two days of rally.
Lastly, you can always fuck off like me, 70% cash, long a handful of relatively safe stocks, pretending to be happy when you’re really fucking seething inside and just know the second you step in to buy $GOEV it’s going to file for bankruptcy protection and really nail you to the cross.
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