It’s six in the evening on Wednesday as I’m composing this for publication in the wee hours of Thursday morning. I have no idea (obviously!) what the markets will look like at that time, but allow me to share this chart of the /ES for this week to make a point:
Over just the past few days, I have noticed a very clear psychological pattern. I will, for some reason or anything, slightly freak out and be struck with fear about something-or-another, and it never transpires. It’s like the proverbial old man: “I’ve lived a long life, and I’ve had many problems, most of which have never happened.”
I call these “Oh No!!!” moments, and limp-wristed sissy that I am, I invariably dump out of positions during these times only to see them do PRECISELY what I predicted shortly thereafter. The color ovals denote:
- RED: Oh no! Trump has TACO’d again and God knows how high the market is going to fly!!!
- BLUE: Oh no! Even with Iran refusing to negotiate, the market doesn’t want to go any lower!
- MAGENTA: Oh no! Now there’s talk about friendly conversations with Iran!
- GREEN: Oh no! Warsh is sweet-talking the market and it’s blasting higher!!!!
- WHITE (as I’m typing this): Oh no! The selling was totally overdone, and people all over the world are going to snap up equities at what they think are cheap prices!!! I’m overexposed!!!
I don’t even want to think about the mountain of cash I’ve left on the table because of nonsense like this, and it’s happened thousands, yes, thousands, of times.
I’m not alone in this, I realize. Still, I just had to say something, because it sucks, and it’s stupid.
