| | | | Forget Winter... Hell is Coming.
Author: Corey Snyder, Publisher
"The way to build superior long-term returns is through preservation of capital and home runs... When you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig."
- Stanley Druckenmiller
At the green age of fifteen, here I was stranded with five other guys — all six or seven years my elder — at a gas station.
We didn't have the slightest idea as to whether or not we would make it to the next show…
Location: Nowhere, South Carolina.
Population: Six band members and a cashier.
And somehow, my folks signed off on this.
Our drummer, Duke, had crawled under the conversion van to figure out what the deal was…
We'd been burning oil for hundreds of miles and he was the only one with any know-how since he grew up working in his father's motorcycle shop.
And this was the first leg of the tour…
You see, it was a week or two before this that the other guys had dinner with my parents, pleading with them to see if I could go on the road…
My biggest fear — my folks' as well — was that something bad would happen while bouncing around the U.S. in a "tour van"…
...An early nineties conversion van fit for a family headed to Yellowstone, not metalheads living on peanut butter and jelly sandwiches and beef jerky.
In fact, I was skipping out on family vacation as well as off-season training for football... That's a big deal where I'm from.
It's the more conventional and "safer" path.
When calling home, I was already omitting the fact that I'd had a couple of bouncers refuse to let me into clubs where I was scheduled to take the stage…
And these weren't the types of places you'd catch The Three Tenors. You wouldn't find their fans in the crowd either…
(The entrance to Alleykatz in Shockoe Bottom was literally in an alley surrounded by convenience stores decorated in bulletproof panels.)
But while sitting on the curb outside of this South Carolina gas station, beside our broken-down chariot, I could sense the panic developing…
Dad would blow a gasket.
Mom, too.
And the skepticism of their friends and other parents would be proven correct.
Maybe they'd force me to quit the band… tell me to focus on school and sports…
…Or maybe they trusted us enough to figure things out and make it to the next town.
The "good son" conscience in me kicked in… and I called.
"Alright, well, how've the shows been?"
Pops was prepared. In fact, I think he was expecting far worse...
It turns out there was no reason for me to skirt around what was happening on tour.
Dad knew the deal along with the possible consequences, but he hoped for the best anyway.
Now, what does any of this have to do with the financial markets?
A lot.
Smarter Than You Think
I don't believe retail consists of some singular body known as "Dumb Money" just as I don't believe my father was a "dumb dad."
Sure, there's a higher-level game being played in the market, but that's an altogether different game anyway.
However, you can't open a single website without being told about the onslaught on Wall Street...
You're always made aware that "doomsday is coming!" and that retail investors have nowhere to go... They don't know what they're doing.
But the biggest issue isn't the market…
It isn't the constant fear-mongering or panicky warnings sent out ad nauseam either...
It's the ongoing condescension, essentially telling retail investors that they don't know or can't handle what's coming... painting retail as no more than a classroom of kindergartners too naive to understand.
My folks knew that there would be bumps on the road, potentially some major ones… But they also knew what they signed up for.
And if you're a trader or investor, you likely know exactly what you signed up for as well.
Is a crash imminent?
Yes. Always.
Will you lose?
Without a doubt… It's how you lose that matters.
But do you need the talking heads scaring you out of the market, as though you don't get the concept of sizing down and taking on less risk?
No.
And it's not as if there's no upside either...
Bad Times. Good Money.
Indeed, Hell is coming.
I'm typically a long-biased trader, although I wouldn't say that I'm a "perma-bull."
The market will do what the market does and that includes not caring about what you and I think or what our natural disposition towards the market is...
And it's for this reason that the constant warnings and panic signals given out do little for investors.
"Debt to GDP is peaking."
"The Dow chart looks like 1929."
Yes, we know… We've known this for some time.
But what's forgotten is how these downturns can mint new millionaires… Remember, wealth is created in tough markets.
And the strategies to take advantage of them are endless.
Go short… buy puts… buy inverse ETFs…
Or simply go long on abused stocks with sound fundamentals and pristine setups…
There are too many to name... But don't expect them to bear fruit overnight.
For instance, in my long portfolio — the positions I won't sell — I'll swing extra shares back and forth outside of my core holding to keep the account moving.
It's boring, but it pays until I'm ready to be paid.
"They" won't talk about this type of thing though...
And I guess they don't need to.
Dumb money knows the market doesn't travel in a linear fashion.
And if your mindset is sound and you block out the noise, you can trade your way to Hell and back.
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| | | | | | | This week, Chris and Brian dive into the BIG topics on everyone's mind right now:
Staying profitable during market turmoil and how traders should approach the inflation narrative...
Don't miss out on the conversation as well as how to get in on the reversal opportunities just on the horizon.
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| | | FINAL PRINTS: The Major Indices Wrap-Up |
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| Index
S&P 500
Dow Jones
NASDAQ
Russell 2000
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| Weekly +/-
+34.30
+419.79
+12.84
-8.54 |
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| % Change
+0.70%
+1.22%
+0.09%
-0.38% |
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| Close
4,391.34
34,746.25
14,579.54
2,233.09
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| % YTD
+16.91%
+13.53%
+13.12%
+13.08%
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| | | MARKET WHISPERS: The Weekend Scoop
- All Your [Banks] Are Belong to Us - There may no longer be a need to check your bank account as President Biden and the IRS are willing to help. One of the proposals in Biden's $3.5 trillion budget plan is receiving some groans due to the IRS potentially receiving permission to monitor accounts totaling $600 or more. The proposal would include loans and investment accounts and is being considered as a way to enforce taxable transactions. The good thing is hackers would never carry out a cyberattack on the IRS… even if the IRS commissioner says there's a budget shortfall in the IT department.
- Shiba Inu Coin Goes Parabolic - Canine cryptos have been all the rage over the last year with Dogecoin (DOGE) skyrocketing, but the latest coin on the rise is Shiba Inu (SHIB). Over the last week, SHIB has risen over 231% with most of the gain coming in a 48-hour period. The alt coin initially began its ascent due to a picture tweeted by Elon Musk of his Shiba Inu puppy, but continued to rise on reports of a 6.3 trillion "whale" purchase. Crypto investors have also circulated a petition for Robinhood (HOOD) to add the coin. Rogue Investing publisher Corey Snyder still can't give a good reason for why he bought it last month.
- Charlie Munger Did What?! - Despite the plummeting share prices of Chinese stocks, Legendary investor Charlie Munger is snatching up even more shares of Alibaba (BABA). According to the latest SEC filings, Daily Journal (DJCO), a company in which Munger holds the seat as chairman, purchased 136,740 shares last quarter, enough to almost double its position in the Chinese tech giant. Save some for the rest of us, Charlie.
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| | | | | Did you miss Options Coach Chris Hood's landmark event? Chris does a deep dive into his cornerstone strategy that has been paying him every week for years...
Click below to watch now.
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| | | HIT OR MISS: Who's on Deck for Earnings
- Monday, October 11th - N/A
- Tuesday, October 12th - Fastenal Co. (FAST), AZZ Inc. (AZZ), SMART Global Holdings (SGH), Pinnacle Financial Partners (PNFP)
- Wednesday, October 13th - JPMorgan Chase & Co. (JPM), Delta Air Lines, Inc. (DAL), BlackRock, Inc. (BLK), First Republic Bank (FRC), Infosys Technologies Ltd. (INFY), Wipro Limited (WIT), Theratechnologies Inc. (THTX), Sono-Tek Corp. (SOTK), E2open Parent Holdings, Inc. (ETWO), Esports Entertainment Group, Inc. (GMBL)
- Thursday, October 14th - Taiwan Semiconductor Manufacturing Company Limited (TSM), Bank of America Corp. (BAC), Wells Fargo & Co. (WFC), Citigroup, Inc. (C), UnitedHealth Group, Inc. (UNH), Morgan Stanley (MS), Walgreens Boots Alliance (WBA), Domino's Pizza, Inc. (DPZ), Commercial Metals Company (CMC), U.S. Bancorp (USB), Progressive Corp. (PGR)
- Friday, October 15th - Goldman Sachs Group, Inc. (GS), PNC Financial Services, Inc. (PNC), Charles Schwab Corp. (SCHW), Prologis, Inc. (PLD), J.B. Hunt Transport Services, Inc. (JBHT), Truist Financial Corp. (TFC), Badger Meter, Inc. (BMI), Sensient Technologies Corp. (SXT), CLPS Incorporation (CLPS)
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| | | Enjoying Dawn Report? Learn something, made some money?SHARE YOUR STORY WITH US OR TELL US HOW TO SERVE YOU BETTER.Let us know at info@rogueinvesting.com |
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| | | | | | | | | | Copyright © 2020 Rogue Investing. All Rights Reserved. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Rogue Investing.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Rogue Investing.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. An InvestPub Company. |
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| HIGH RISK WARNING Trading foreign exchange, stocks, options, or futures on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. RogueInvesting.com provides general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future success. |
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