Market After The Open - Wednesday 24 January

Getting too easy for longs.

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When It Feels Too Easy … It’s Usually About To Get More Difficult

Right now, if you have been following price in the equities markets, here’s how your day goes. Wake up; check futures; do stuff; wait for the open; do stuff; look at prices at the close; check how much money you made today by doing … literally nothing at all. Eat dinner. Do stuff. Sleep. Repeat.

Now, you can congratulate yourself on all the brains and courage &c that went into setting yourself up to enjoy the bull run, well done you. (It wasn’t luck - right? Definitely brains. And courage. And your innate sense of where the market is going. You’re good. Real good. Maybe the best. Give Jim Simons a call. Maybe he has a slot.). And of course you will be continuing to follow price, not second guess where it is going. So you won’t be running for the exit yet nor piling up the net-short positions yet.

But surely, if you sit back for a moment, you may think - well, it is this easy in markets sometimes, so I have two tasks at hand. One, don’t mess it up on the way up - don’t let fear rule the roost so that I miss the wins on the bull side. And two, don’t mess it up on the way down by refusing to believe that this bull run can ever end.

Now if indeed you are the Grand Poobah that your limbic brain currently believes you to be, you won’t mess it up when the market turns. So what you will be doing right now is saying, tee-hee, free money for me; but not believing that this is how it is forever; instead you will be looking for the turn, then the confirmation of the turn, and then building your hedges or taking profits (you choose) accordingly.

Right?

OK. Now onto our usual charts. Paying members of Inner Circle, scroll down for our long- and short-term take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000 - including the regular ETFs, the futures, the 3x leveraged ETFs and then finishing with a take on sector ETFs in semiconductor, tech, and the Fangs. Phew! Let’s go! (Not a paying member? Sign up right here. If you’re not sure about committing, just take the monthly. If you like it and want to take an annual, we’ll deduct that first month’s fee so you’re not out of pocket. If you hate it, you’re down only $299).

Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.