How To Make This Costly Trend Your Friend
The trend is your friend.
That’s almost always the case.
Almost.
The only time it’s not is at extremes.
Extreme highs, extreme lows, extreme events, extreme anything.
We’re not at one of those extreme points.
That’s what makes this chart one of the most important in stocks today.
It was featured in Market Wakes Up to Fact That Fed Pivot Could Signal Recession in Bloomberg:
This is a classic trend of lower lows and lower highs indicative of bear markets.
This trend can be your friend though.
The Dow is still 33,000, hardly a Greater-Depression level extreme that has historically marked a turning point.
But this shows the risks are probably outweighing the rewards at this current market level.
So, with the current rally peaking, caution and cash will be two advantageous things to have right now.
