Yet another week of the same – choppy prices intra-week ending with little net change – the same pattern that has been repeating since March.
Once again, the “dip” in stock prices caused by nervous amateur investors selling on Monday was met with a “buy the dip” rally by institutional investors on Wednesday, due in large part to passage of the infrastructure bill – as institutional investors love it when the federal government doles out money to corporations.
As a result, many of our stocks rose, increasing our gains, although a few stocks bought recently just cannot get going or are slumping at the moment. For our newest subscribers, patience remains key as trade signals offering new opportunities are few (none in Level 1).
Interesting that many of our stocks remain highly productive – though to a lesser degree than usual – despite a lack of consensus sentiment among investors who are reacting to so many national crises either un-addressed by – or caused by – the Biden administration (whoever is in charge). This is a reminder that a strategy of stock trading does work in all market situations unlike other strategies.
Chart patterns continue to show the institutional “smart money” investors have their reasons to remain bullish. Since they are our guides, we will do the same.