Want to know why it always feels like Opposite Day in financial markets? Is it some weird emoto-fundamentalist-technical-trickery that can be solved if you just concentrate harder and pick those hidden stocks that nobody knows about yet or follow another thirty-four Lost Geniuses Of Fintwit? It is not. It is because in public securities markets you are very much not in control. Big Money is in control. And Big Money knows this. Big Money is like a mean ol’ alley cat whilst you be the honest mouse just trying to pick up a little cheese here and there, no harm to anyone sir. The alley cat doesn’t need to hunt for mouse, not with all the tasty fresh fish sat around within its reach. Indeed it could go feast on the fish hoarded by some of the other, smaller alley cats a little further down the alley. But no. Hunt mouse it does. Know why? Because it’s a mean ol’ alley cat. And that’s what mean ol’ alley cats do for kicks. Hunt mouse.
If in life you’re the hunted, it’s always Opposite Day because you never have a Scooby’s what’s going to happen next. Suddenly feel safe? Time to worry. Starting to worry? Talk yourself down off a ledge. And so on. This is a very stressful kind of existence and it’s a reason why meeces don’t last so long in the alley. They tend to either get caught, which never ends well, or to give up and move onto an easier life in a field, where there is a lot less cheese but at least there are no dang alley cats. The occasional kestrel. But no alley cats.
The constant bursts of corticosteroids administered by your adrenal system if you live like this are fundamentally performance draining. Short term stress is a good thing as we all know. Invigorating. Long term stress, the kind that comes with trying to dodge that dang cat every single trading day - that’s destructive. And this is the kind of stress you want to avoid in financial markets, because if you’re worn down like that, you can’t think straight and that means you can’t do your best work.
Our goal in our members-only service, Growth Investor Pro, is to do exactly what it says on the tin. We’d like to call it Alley Cat Investing or Mean Ol’ Tomcat Trading but it would take some explaining around here and we’re busy and all.
We’re very focused on helping you think not like a mouse, but think like a cat. A mean ol’ cat. Because if you think like Big Money, and move like Big Money, then whether you have Big Money money in your brokerage account, or just a little spare cheese, doesn’t matter. You can learn to quietly and consistently make money, just like Big Money does.
We have been flagging for some time that the selldown in stocks lately was just a fakeout. Doesn’t mean brokerage accounts aren’t declining, doesn’t mean no stops are tripped, but does mean that this correction is just that, a correction like any other, not The Big One triggered by inflation or Omicron or stalled legislation or because it rained in Columbus, OH. Just a correction. Down, then up. We’ve been flagging this for as long as the correction was ongoing because the relevant stock charts were shouting “not The Big One”. Whether you looked at SPY or QQQ or IWM or any of the individual charts we cover? By the end of last week they were almost all shouting “time to move back up soon”.
But small money - mouse money - was still selling. Panic selling. Why? Because of the uninformed nature of small money coupled with the huge adrenal corticosteroid load applied - on purpose!! - by Big Money for the last couple weeks.
Tuesday, Big Money figured, all the meeces were exhausted and had mainly abandoned their pursuit of cheese and could be found lying around in the alley in an act of self sacrifice. At least the ones who hadn’t mustered the energy to bail and move to a field. So Big Money went hunting. And lo did all the stocks move up, and bigly, to the surprise and dread of meeces everywhere.
This wasn’t a surprise if you were thinking like Big Money. Remember - doesn’t matter how much money you have. If you have Wolf Of Wall Street Money or if you have Newborn Fieldmouse money you can still think and act like Big Money.
Last week we said this in The Big Dog Dealing Room (no, don’t suppose we can call it that either):