The S&P 500 added 0.61% last week and it continues hovering near record highs despite the relentless inflation warnings.
As I’ve been telling readers all along, if the market cared about these things, it would have crashed by now. Everyone has heard these warnings and those that feared them sold a long time ago. Anyone still holding stocks acknowledges these risks and is unlikely to be spooked by recycling the same old headlines.
This stubborn resilience confirms this is a strong marker, not a weak one. As common sense as this sounds, way too many traders fail to grasp the simple concept that a market that refuses to go down will eventually go up.
Bears calling for the “inevitable” breakdown will need to wait a while longer. They’ve been predicting a crash for over a year now, what’s a few more months?
The path of least resistance remains higher. Until further notice, keep holding for higher prices and raising our trailing stops.
If you find these posts useful, please return the favor by liking and sharing them!
Sign up for FREE Email Alerts to get profitable insights like these delivered to your inbox every evening.
What’s a good trade worth to you?
How about avoiding a loss?
For less than $1/day, receive actionable analysis and a trading plan every day during market hours
Follow Jani on Twitter @crackedmarket
Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.