As of last Friday … the meat-grinder market is no more.
We have a trend folks. With the break lower on the 30 year bond last week, stocks were given the all-clear to move higher. My defensive skew on equities seems to have worked out well. I’m fully bullish at this point.
No medium term-trend lasts forever. But much of the trick of trading is once you have a clearly defined trend? Not doubting it for a second until the market gives reason to do so. As has been said very well by others … new traders do not lose because of their losing trades. Professionals have losing trades. New traders lose because they cut their winning trades short.
So do not doubt the trend as long as it remains with us.
The meat-grinder may return. But for now? We have a stock market rally.
It is as if we are experiencing 2014 part deux …