By: Steve Smith
I got a lot of emails and questions this week about the stall in the market’s upward trend.
As I write this on Friday afternoon, the market is down just over ½ of a point since last Friday’s close. That’s hardly a crash.
I believe the questions I’m seeing are because of the scaremongers on the Internet telling everyone that a crash is imminent.
I can tell you this, I’ve been in and around the market since I was 12 years old. That’s no joke, my first summer job was as a runner at my father’s brokerage house.
My point is I have done this for a long time and I can say with confidence that the scaremongers on the Internet don’t have any idea when a crash will come.
Will the market change direction? Will the bears come out to play?
Because the market always reverses eventually.
But trying to time that reversal is a fool’s errand in my opinion.
Some consolidation is good for this market. I wouldn’t even mind seeing a real pullback. As a matter of fact, I expect to see a full-fledged correction at some point.
However, a correction is not a crash. A correction is healthy.
A correction sets the stage for another rally and another chance at gains.
As long as you are trading the right way (Rule 1: No Naked Positions) you don’t have anything to worry about.
Everyone has trades go against them, but when your trades are properly hedged you know what your maximum loss is upfront. That means you can sleep at night because you aren’t trading with money you don’t have.
That’s how we trade in Options360 (Grab Your $19 Trial Subscription Here)
Remember, the natural state of the market is a bull market.
That means we need to trade the market like a bull market until IT proves otherwise. Not Youtubers or bloggers or authors or analysts.
The MARKET has to prove it’s changed direction.
In the meantime, we will see how earnings go over the next 6 weeks, and that will help inform our expectations and trading strategies for Options360 subscribers.
To Your Success,