This Week In Episodic Pivots, January 21, 2024
Market at all-time highs
This week the S&P 500 tagged new all-time highs. It’s been an incredible run higher. The market has climbed the wall of worry. And it’s clear the trend now is up. So we’re going to keep holding onto our positions.
This past week though we got stopped out of American Lithium ( AMLI 0.00%↑ ) for a loss and Clear Secure ( YOU 0.00%↑ ) for a gain. We’ll continue to hold the rest of the positions.
One might ask why our positions aren’t doing better with the market surging higher. And that’s a fair question. We’re buying on news, after a move higher hoping to ride the trend higher. And the episodic pivot setup doesn’t bode well for finding the large-cap stocks that are surging right now.
This should only be a small portion of your overall portfolio. I hope everyone has other strategies they’re investing in. I’ve made a fair amount the past couple of months owning the likes of AMD 0.00%↑ and Broadcom ( AVGO 0.00%↑ ). But those aren’t episodic pivots. Those are just strong companies showing strong stock performance.
If anyone wants to look at what a strong chart looks like, look at AMD. That is a strong uptrend since its last earnings report in November. And the slight pullbacks all stopped at support levels. I’m not saying it’s a good trade now - it looks a bit overextended - but it’s a case study of a strong uptrending stock.
It’s hard to imagine we won’t see a pullback soon, but don’t try to fight the trend. This is not a short yet. Let it show some weakness first. Don’t be a hero and try calling a top.
We don’t have any new trades this week. But I expect as earnings season gets in full swing, we’ll see many great setups. So stay tuned for more trades in the coming sessions.