It took 14 trading days for the S&P 500 to rally a little over 3% to the year to date highs, but only took a couple days to erase most of those gains. Chart-chasing isn’t a viable and sustainable strategy. Here is a market update. Watch the video now.
For my part, you’re preaching to the choir about chasing trades, which is against my natural instinct. Who in his right mind would chase MSFT above $130? APPL above $225, CMG above $600, or TSLA at any price? What ignoramus continues to hold a TLT call after it’s gapped up several days in a row? Well, all the fools who are quadrupling and quintupling their options positions by doing so. Entering and staying in a powerful trend is so hard because there are always both technical and fundamental reasons not to, regardless of your investing timeframe. The most valuable advice, regarding trading or anything else, would be that which could reveal the fallacies of my basic instincts, which so far haven’t served me so well.