This Is A BTFD Market Until Proven Otherwise 

The stock market came within a few points of hitting a new all-time high once again today. This has been the story of the past year and a half. We’ve grinded higher, with a few bumps and bruises along the way. But for the most part, we keep heading higher. I can list a bunch arguments citing macro, fundamentals, and/or sentiment. That’s fine and dandy but neither of those tell us the state of the market.

Right now, volatility is low (and declining). And the market is slowly creeping higher. This has been true since 2012 and continues to be true today. We’re in a “BTFD” (Buy The F**k*** Dip) market until proven otherwise. Until the channel in the chart below breaks, there is really no reason to put on heavy shorts or stop buying the dip. Of course, I’m speaking in terms of a more shorter-timeframe – you don’t want to be going all in after a massive 2 years runup in the market- but overall, this is the bull market we are in and we must accept it.

Or you can lose money by listening to the bears, doom-&-gloomers, and pessimists of the world. This blog post might top the market, but hey, all I know is that “BTFD” has worked and I’ll assume it’ll keep on working. If it doesn’t, as long as I respect my stops and cut my losses, I have nothing to worry about.

$SPY – SPDR S&P 500 Weekly Chart

SPY weekly


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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