The quote from this week’s Exodus Strategy Session is about perfect for our current trading environment:
“There are many things of which a wise man might wish to be ignorant.” – Ralph Waldo Emerson
I don’t care about the impeachment process. Yes, I care that our government is set up to reward power-hungry psychopaths and that our state corrupt, but this is beyond my control. I do not care about the impeachment.
I love love love the way Senior The Fly is covering the corona virus here on iBankCoin and out on Twitter, and I hope he and others make a mint trading the pathogen pin action. Me, I trade NASDAQ futures and long-term invest is thoroughbred stocks like AMZN, FB, MSFT, TSLA and so on. I don’t care about the corona virus. My immune system is somewhere near the apex and will make to kill any virus or germ. As I said last week, my cock and constitution are rock hard.
Ignorance is bliss. I have an explicit purpose when I sit down and trade, and that purpose is to extract as many fiat american dollars as possible from the global financial complex. I am not here to make friends. When I publish my plans, it is to clarify my thoughts and provide valuable insight to a handful of other traders without wasting their time. Then I make my way into the NASDAQ arena, which is essentially like entering the Hunger Games. Nothing matters except executing the plan. Survival necessitates that I have an optimal grip on what moves the NASDAQ 100.
What has my attention big time is the NASDAQ Transportation index. It could be taking what I call the ‘penultimate step’ right off the springboard of a vital Fibonacci level. If you were never one of the top long jumpers in your state like Humble Raul, then you may be unfamiliar with the penultimate step. It is the final two foot placements before you launch your body into the air from a full sprint. The goal is to take two really tight steps, with the toe of your launch foot striking as close to the edge of the wooden board that separates the runway from the sand as possible. Then you fly. It maximizes the amount of your running momentum that is converted into flying. When done correctly, your two feet nearly strike the ground simultaneously.
The NASDAQ Transportation index printed this stupidly good-looking excess low Thursday. Quite possible a powerful enough penultimate step to finally launch up-and-away from the multi-year range price has been trapped in:
The more likely outcome is that gravity wins and we fall back down through the well-established range. Folks don’t realize that assets spend most of their time in balance and only occasionally go into discovery mode.
They think it’s all Tesla moments, pushing and pushing and pushing higher and higher and higher. Stick around long enough and you’ll be learned one way or another that balance is the primary mode.
Which is why you need to become good at two things—identifying balance and positioning accordingly and (more importantly) how to milk a winner for everything it has to offer. If you grab ahold of a position BEFORE it enters discovery, your greatest alley will be patience.
Most people lack patience. Our entire economy is built around making us compulsive, chaotic fools…pulled towards any new shiny thing dangled before our nose. It really blows my mind that Amazon can deliver millions of items in ONE DAY. How are you not invested in a company that can do that?
Anyhow, I choose selective ignorance. I only take in the information that is neccecary for me to make money. The rest might as well be girl gossip. I don’t care.
One final note. Something so clean and orderly about a month completing itself on a Friday, don’t you agree? What a nice way to start the year.
Raul Santos, January 26th 2020
Exodus members, the 271st edition of Strategy Session is live. The main algo inside Exodus is behaving unlike it has in the last few years. I discuss what I think it means in Section III. Go check it out!
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