Market On Open - Monday 1 April
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Still Moving Up
by Alex King
Now up is boring. Let's assume you've been positioned correctly for this bull, which hopefully you have if you've been reading these market notes over the last 15 months or so. Everything is looking good; you're set for further success; all you need to is let the money roll in.
So now you have two risks.
One, the market changes. OK. We should be able to deal with that. We will know when the selloff comes, because prices will drop and keep dropping. That's not happening yet.
Two, the dopamine-addicted fiend alter-ego sat on your shoulder is urging you to do something because up-slowly, that's not feeding anyone's habit. Used correctly this urge can be helpful. Review your portfolios, see what's moving and what isn't, consider whether you are correctly allocated across the stocks and ETFs you want to own, and so forth. This kind of activity is good. Or it can be unhelpful as in, this has all run up a lot, let's find something to short. All run up a lot, let's move to heavy cash allocation. All run up a lot, if only I had YOLO'd TQQQ 0DTE call options, I know, I'll start today. That kind of thing. We all have that fiend on our shoulders, and the fiend is best ignored. Boring-up is good if you're aligned that way. Boring-down is good if you're aligned that way. Yikes-It's-Turmoil can be good too if you're quick. What one has to do is recognize the market that one is in, and react accordingly. For now? Boring-up.
Anyway, let’s check in on our usual charts - we cover the US 10-year yield, the S&P500 in three incarnations (SPY, ES, UPRO), Nasdaq, the Dow and the Russell ditto (unlevered ETF, futures and 3x leveraged ETFs in each case) - plus some sector-specific levered and unlevered ETFs. We do this daily for our paying members here, whether you are a member of the Inner Circle or our Market Insight membership tiers.
If you’ve yet to sign up for one of the paid tiers here? You can do so from the links below. The signup links below will give you the options, but if you have any difficulties signing up, you can reach us right here.