HGSI Doc Top Down Review 8.15.2021

Previously published on the HGSI Community Forum. For earlier access to Dr. Scotts Top Down Review, please register at HGSI Community Forum.  

Welcome to this Week’s Review

The markets continue vicious rotation within a class (value vs. growth), Cap (large vs. small), interest rate sensitivity, and industry group perspective.  It can be frustrating as we watch the indices march higher, yet our account balances are being chopped up.  Welcome to Trading.  As one of my mentors likes to say, this is why it’s called trading, not winning.

I apologize for the length of this video.  I spend an inordinate amount of time looking at the market and some comparative ratios.  I guess that in itself is a sign of my concern for the market.  As I have stated multiple times on video,   I am looking for a correction like many others.  That said, no one knows if that will happen nor when.  Thus I have learned from past mistakes to continue to trade the market we have, and while it is ok to anticipate and prepare for what comes next, entering shorts and contras in a choppy market will kill your accounts faster.

I still do not think this is a time to be a hero in the market.  I have lightened up my position count and size.   I have raised cash.  I prepare for what comes next, whether we get a surprise move to the upside or the anticipated downside correction.  I will be opportunistic now but am waiting for direction from the markets.

Remember, this is education only.  My goal is to help you BECOME YOUR OWN GURU.