Before You Throw In The Towel On This Bull Market…
Major indexes have lost their longer term moving averages.
China’s market continues to get pummeled.
The Fed threatens to continue to raise interest rates in the face of a market sell off.
More and more stocks are making their lows on the year.
The market is “due” for a 5% or 10% one day plunge.
Global Growth is slowing.
Etc. Etc. Etc.
It has not been any fun for equity bulls this month. It has not been any fun for me this month. I’ve been on the wrong side of more than my share of trades and have questioned if I should begin taking off my risk exposure into any buying strength. But before we throw in the towel on this bull market, and speaking of risk…
Remember the cannabis group? Those companies that are on the forefront of an industry in its infancy? The companies once looked at as highly speculative? Shouldn’t they be getting destroyed with the rest of risk assets? Some of the riskiest of names in this space, the OTC listed stocks are trading well, seemingly resistant to the beat down happening across the rest of the market. As the market sold off hard last week, many of these stocks lost less than consumer staples. And when the market has snapped back hard, these rallied as if we weren’t ever going to see a dip again.
Remember the epitome of risk called Bitcoin? I would think that if this really were the end of the world, BTC would certainly sell off before almost anything. It’s just a fad right? I can’t imagine a market crash being complete without at minimum a 50% hair cut in Bitcoin. What does it have to say lately?
Nothing. It’s flat. Hardly budged.
I think a “market crash” scenario includes these unless everyone is planning to get baked during the recession and pay for it by way of Bitcoin.
I am going to need to see at least one of these groups sell off hard before I throw in the towel.
Until then, I’m just in a pull back of an uptrend.