Recap of last week:
We just had our most profitable week of the entire year last week. Absolutely disgusting face ripping rally last week. Every single day of the week was a trend day up. And we were positioned heavily long.
We had not one but two tranches, one at 4160 and one at 4240 or so. Thats a massive winner on double the size. SPX rallied around 270 points in a single week. We of course didn’t get the absolute bottom, not that it really matters. When the market doles out a 270 point rally, and you only bagged a 220 point winner with leverage, do you really care? I dont. The important lesson here is you will always leave money on the table. Always, always, always. You have to learn to not let it bother you. Get your piece of the pie, secure your bag, and move on to the next opportunity. If you learn how to trade properly, and executing a consistent process without getting emotional, trust me you will make more money than you will ever spend in 100 lifetimes.
By the way, we were down on our calls for a couple days that last week of October. I even held your hand and encourage you guys, to hold. In case your faith was wavering, and it is perfectly normal by the way, I was there to tell you to dont lose faith and keep your long bias. I even said the S&P can rally 250-300 points in a single week. Lo and behold the very next week we rallied 270. Funny coincidence eh?
If having that huge winner on stocks wasn’t enough, we also printed a another massive winner in bonds.
I told you in no uncertain terms you should buy bonds. Buy the fear. No beating around the bush, no scenario 1 we go down scenario 2 we go up. Fuck all that. I said buy bonds. Buy the fear. Takes balls to make a directional call.
Take a look at the chart when Oct 20 is. The lowest close of this entire bear market was 82.77 the day before. When I sent my buy recommendation, the TLT has failed to close below my entry for even a single day. If you bought when I bought, you never took a single day of drawdown. How is that for a good entry. Keep in mind this is a 500 day bear market. So catching that knife without even taking 1 measly day in drawdown is an achievement.
Now onto next week…
Next move for markets?