Last week we talked about a post-election rally and lo-and-behold, we're seeing just that. For every one stock on the NYSE that closed in the red yesterday, 5 closed in the green. In fact, all three stock indices closed at their highest levels of the year.
The question we have for you today is:
Tell us what you see happening in the markets in our comments section below.
O.K. I got it wrong ... but MarketClub's "Trade Triangles" got it right.
The last three days in equity markets have been extraordinary beyond anyone's imagination and you have to respect the market.
One of my heroes in the stock market was a gentleman named Bernard Baruch. You basically don't hear about him anymore, but his teachings about the market are incredibly useful. You may want to read his book, Baruch: My Own Story, which I highly recommend.
One of my favorite sayings that Baruch gets credited for goes like this: "The main purpose of the stock market is to make fools of as many men as possible." Well that certainly happened to me this week when the head and shoulders formation reversed and the market squeezed all the shorts dry.
I got it wrong, but MarketClub's "Trade Triangles" had it right. Our "Trade Triangle" technology was basically neutral and on the sideline's until yesterday when the weekly "Trade Triangle" flashed a buy signal on the stock market.
If you've been reading this blog for any length of time you know that I stress diversification and discipline in trading. When you do that, you really do win out in the long run.
All the best,