HOW THE MARKET MAKES YOU EARN YOUR TRIP DOWN ITS PANTS
Intermediate to long-term reversal points in the financial markets are some of the most profitable trading opportunities. I've caught market tops and bottoms in the past that brought in enormous gains in just a couple of months. The problem is that they put me through the ringer first.
It's similar to courting a girl who knows you will do anything to garner her affection. She will intentionally put you through the ringer in order to insure that your intentions are real. The market is no different. It sees that you want to go down its pants, so it makes sure that you prove yourself worthy of the trip before allowing you the first button.
That's what we're seeing here, at this moment, with this market. There is no doubt that the long side is an extremely crowded trade. There is also no doubt that the market will want to shake the tree a bit before going up any further. Not because it wants to, but because it has to.
Markets cannot successfully maintain a trend, up or down, without rebalancing the bids and the offers. That's why markets stop to correct, consolidate and frustrate for a period of time during even the most powerful of uptrends.
Later tonight I will be posting charts that demonstrate exactly how the market is manipulating the bulls into believing that they are safe when they are anything but.
Lastly, I should mention that following our first down month in many months in January, our portfolio had a stellar beginning to February. Our largest position (oil/gas spinoff) posted a gain of nearly 15%. It had recently pulled back off its highs, which we took advantage of to buy more...and are now in a fully allocated position with the stock. We're expecting the upside to be tremendous here...as insiders have loaded the boat recently and some real wise money has become involved in their efforts to grow the company.
Zenpenny members prosper, it's guaranteed.
