This Week in Episodic Pivots: November 5, 2023

This is the hardest thing to do in the markets

I don’t trust any market that goes up five days in a row like the market did last week. Some of the sharpest rallies happen in bear markets.

And the market rallied up right to a perfect resistance point. So the odds are the market pulls back this week.

But also the large move in the market made all the potential episodic pivots unbuyable. The stocks surged too high above resistance points that the risk reward setups aren’t favorable.

Often the hardest thing to do in the market is to do nothing. It feels like we aren’t working. And to make money we think we need to work. But this is the wrong mindset in the markets. We get to choose which setups we want to take… And to be profitable, you should only take the fat pitches.

So let’s just hang onto our two positions and see how this all shakes out.