Did You Buy And Not Sell Friday? You're Doing It Wrong - Again

Nov. 14, 2022 3:33 AM ETADBE, AMZN, BA, BJ, CFLT, GOOG, GOOGL, HCP, HD, HXL, INTU, JAZZ, LLY, LOW, MSFT, NOW, NVDA, PANW, RTX, SGEN, SPR, SPY, TGT, TJX, WMT137 Comments

Summary

  • This week saw quite a bit of volatility, yet the VIX continues to fall. This is telling us that there's a lot of complacency out there.
  • The market welcomed a lower inflation number, that's great, but then it ran up out of all proportion on Friday.
  • I expect this week we will see quite a comedown, as I explain here.
  • This idea was discussed in more depth with members of my private investing community, Dual Mind Research. Learn More »
failure to launch a vintage style rocket.

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Did You Buy On Friday instead of sell. you’re doing it wrong - Again.

Everyone was pleased that there was a lower inflation number. The market was justified in going higher. Instead, it went way higher out of proportion to the news. We are

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This article was written by

David H. Lerner profile picture
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Proven quantitative & qualitative strategies generating consistent returns
I have been writing about stocks for about a decade. I take a multi-disciplined approach but I am not doctrinaire. I come from a technology background having a software consulting business for a number of decades and also took part in business development for tech media startups. I employ technical analysis when it's called for. I believe that market psychology plays a huge role. My favorite explanation for charting is that charts are essentially a psychograph of sentiment about a stock. Market participants rely on narratives to explain a stock's appeal. If you can identify a narrative or trend as it is forming that can pay outsized rewards. I have an eclectic style and it might take you a few articles to "get" me. We now offer a subscription service: Dual Minds Research. I am partnering with Serop Elmayan, a quantitatively oriented trader that takes an engineer's approach to setting up trades. The chat room opens at 5 am. I have already been up since 4 am scouring the news feeds, commodities, and futures to suss out how the day will start,  I provide live minute-by-minute updates on the standard indicators and a few that we surface on our own. The chat officially closes at 430 pm, but I will often check at around 8 pm to post updates. Our Community utilizes the Cash Management Discipline, a simple trading style that we use as a discipline to counter the wild volatility we have to deal with today. Trading ideas will be surfaced almost daily. Serop will only provide trades that he has determined to have a high probability of success. Check us out.

Disclosure: I/we have a beneficial long position in the shares of BA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I own shares in these names ADBE, AMZN, CFLT, GOOGL, HCP, INTU, JAZZ, LLY, MSFT, NOW, NVDA, RTX, SGEN, SPR.
Please note: You should not take the above text as investment advice. I am not a broker, Registered Investment Advisor, or certified money manager, I cannot give financial advice. What I am doing is chronicling my thought process. If I use the word you in a sentence, I am really talking to myself, or it was a simple typo, in no way did I mean to advise you. Always do your own research and understand what you are buying, and what your risk is, and be sure before you make a purchase. Also, only trade what you can afford to lose.

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