Blog Post 2: That B*tch Irene aka The Market

Well well well... Today was a DAY! Market jumped higher than a kid being double bounced on a trampoline by your fat Aunt Kathy. Everything was mooning at some point or another. QQQ up 3.01%, SPY up 2.38%, and DOW up 1.95%. What does this mean to me? Nothing at all. This is classic "Buy the dip" but I expect experienced investors to keep most cash on hand at the moment. Yes, this was a great green day. No, I do not see this bull run lasting all week. Think of the stock market like a greedy, gold-digging wife named Irene. Irene is gorgeous so you want to give and give and give. But Irene is a gold-digging b*tch, so when you give too much, she takes it and leaves. The stock market gives and takes, it has its own psychology and it doesn't care what you think. Never get too optimistic on a bull run because when you decide to take profits, think about the millions of people looking to do the same thing. Right now, we have the most amount of retail investors in the market relative to institutional investors. The psychology of the common trader differs then that of smart money. Smart money doesn't panic sell, they are literally the ones that shake out the panic selling weak hands. The problem is that the majority of these retail traders play stocks that don't have a ton of institutional backing, so the smart money isn't there to catch you when the panic selling kicks in. Choose your stocks and your plays wisely this week. A bird in the hand (cash) is better than two in the bush (holding through uncertainty). Don't get too comfortable, March is typically the choppiest month of the year. Swings will be harder, scalps will be more spontaneous, puts will be in play more than normal. Basically what I'm saying is, get a lawyer before Irene files for a divorce.

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