Hey Guys,
The market is up a lot from where it was yesterday. The S&P 500 is 100 points higher than where it was to start the day yesterday.
And that, to me, exemplifies how unpredictable the market can be. Late last week and through the weekend, there was so much discussion about the collapse of Silicon Valley Bank as well as First Republic Bank in San Francisco. There were comparisons between this and the start of the 2008 crash. Almost everywhere I looked, I saw a sentiment of fear and concern.
And yet after the weekend, the market went up.
I'm not saying there's isn't a rational reason that the market went up, but I'm saying there was a lot of cause to expect it to go down.
It's one of the reasons I like leaning on history and back tests to make my trading decisions. Rather than trying to predict what the market will do, I simply stick to the back-tested trading plan. It takes the guesswork out, and it probably saves me from pulling my hair out in situations like this where the market's moves seem counterintuitive.
The market is still quite volatile and could go either way at the drop of a dime. This morning before the market opened, the latest inflation numbers came out. More economic reports are slated for later this week, and next week the Fed is going to convene. It's unlikely that the market would be quiet through all this.
I picked up one new position today: HMC stock in the double down account.
If you have any questions or feedback, I'd love to hear from you.