The tape the last several weeks has not been very accommodating for many traders. It has become much more difficult to swing trade/enter positions as momentum isn’t spilling over into the next session. Even scalping trades intraday has become much more difficult since stonks don’t move shortly after the open. It’s almost as if we either gap-up or down and from 10am to close there is barely any action, killing premiums. If you managed to stay flat or slightly up over the last few weeks, you did well. You are probably seeing the markets and SPY up day after day and wondering what the fuck you are doing wrong, how is it possible that all your stocks are in the red? The easy answer is to say that you did nothing wrong. The markets and indices are being held up by only a select few stocks, however, the fuckery taking place will not occur once Apple splits it’s shares and the weighted index fiasco comes to an end.
Many stocks are exactly in the same spot they were a couple weeks ago and while markets are near the highs, breadth has been dreadful. As we have approached the highs it has become more and more difficult to feel the direction of the market. We’ll hit the ATH, get rejected and bounce right back up the day after for another attempt to break through. This often happens at the highs, traders unclear which direction to steer as all the targets have been reached… But remember, Swaggy is the Captain now. In my opinion, we will embrace the chop and continue higher, too many people are calling for doomsday and thus I remain bullish. You see, my friends, in this game the table is tilted and not in your favor. It is rigged against retail traders and the common folk. If you think you have an edge over the algos and the vast amounts of capital they can expend to steal profits from your account, you are better off trying to hold water in your hands. It’s a big club and you aint in it.
When the music (and the Fed printing) stops, the collapse will be inevitable, we just don’t know when. For all you new traders getting into equities, 10-15% unemployment will eventually have some repercussions on the markets and as much as I love them being held up by Fed crack, it makes things unpredictable. My opinion is the virus stonks that were thought of temporary will now become the new norm in society it’s time to seek out companies whose fundamentals that have improved due to the pandemic. What was was temporary has now become a PERMANENT state of fucker, so any company thriving in these times will continue to do so for the foreseeable future.