What now; Locusts?

 In The Lonely Bull

Hurricanes, political impasse, potential nuclear war; all these can’t derail this stock market.  So what will?  Certainly, at some point, the U.S. stock market will suffer a correction, however, it has remained amazingly resilient in spite of numerous challenges. 

Weeks ago the Lonely Bull predicted that the expected historically challenging months of August and September just might be a good period for stocks.  This was because so many traders were positioned for a downturn, expecting the worst. 

In previous blogs we have noted that when expectations run high for a certain event, look for the opposite to happen.  That is because traders’ collective action prepares the market in advance, but when something else occurs, they are unprepared and need to make quick adjustments.  If they already sold looking for cheaper prices, when the news is not so bad or even good, then they have to buy in again or risk being left behind.  Stay steady, my friends.

El Solo Toro

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