What the Pros See That Rookies Miss

Let’s Be Real For a Minute

The idea that one stock holds the key to the market’s future? 

That’s a pipedream.

There are thousands of stocks in the world.

At ANY point you can find one to support whatever narrative you want:

“Look, this one’s rolling over a recession is coming.”

“Look, this one’s ripping how could you be bearish?”

If 100 bank stocks are rising and 1 is falling, guess which one the bears will post? 

That’s cherry-picking. Not an investment process.

The goal isn’t to find ONE stock to prove a thesis. 

It’s to build a breadth of evidence that shows whether that thesis is the exception or the rule.

That’s why I love look at New Highs vs. New Lows.

It cuts through the noise and shows the collective vote of the market.

Giving us one visual to see if new highs/new lows are the exception or the rule?

As I talked about earlier this week, a technician's goal is to become fluent in the message of the market and align with it. 

Right now the message is clear:

• New highs are persistent, not sporadic. Breakouts are working.
• New lows are in dormancy. Breakdowns are failing.

These are hallmarks of a Bull Market, where it pays more to be opportunistic than anxious about the outliers.

Leave the cherry-picking to the rookies. 

This is how professionals view markets.

Anyways, that’s my two cents.