Have you noticed how stocks keep making lower lows and lower highs? We call those downtrends.

There’s an important reason why I bring this up. There is a much higher likelihood for markets to continue in the direction they’re heading in, than for them to just reverse course and start to move in the opposite direction. This is true for both uptrends and downtrends.

We live in an interesting world of double standards. When stocks are going up and “irresponsible” shorts are getting squeezed, no one feels bad for them. In fact, short sellers get ridiculed for “being so stupid” (see: $TSLA last year). But when longs are getting killed for being irresponsible, we’re supposed to feel bad for them right? That’s how this works?

I know there are certain perceptions about the intentions of shorts betting on a company failing vs shareholders betting on a company’s growth. Fine. But seriously, is there a difference at the end of the day. It’s really just math for most of us. I think we really need to think about these things. I don’t have the answers, but I certainly question the hypocrisy.

Here’s what this nice gentleman on the internet had to say: [Read more…]

These are the types of markets that are a statisticians dream come true. They get to run all sorts of scans and tests to see how long it’s been since volatility did this or the rate of change in the S&P500 did that. To be honest, it’s all a bunch of bullshit. The market doesn’t care about your stats.

I’m not going to go over all of them because I don’t find them very helpful. In fact, I find them incredibly deceiving and, even worse, distracting. I felt that way on the way up with their stupid, “S&P500 hasn’t moved 1% in a single day in x amount of days….”. Who gives a damn?

Today is no different.

Let’s talk about what actually matters. [Read more…]