if there’s one thing that stood out to me the most this week, it’s that human beings continue to be insane.
on november 4th, barchart posted this:
everyone rejoice! the democrats won and its time to buy stocks again.
and less than 24 hours later, barchart posted this:
everyone run! the largest tech sell off since march 2020 is upon us.
so which one was it: fear? extreme fear? can markets change that fast? and should we as traders take action on the schizophrenic nature of the market?
of course, yes. but can it really be as easy as a fear & greed index?
probably not. that won’t stop people from making stupid decisions because of it though.
in other news, my wife and kids put up the christmas tree this week. is that crazy too?
ho, ho, ho! stocks are on the verge of a new bear market.. which tends to be the best time of the year to buy. worked in 2023, worked in 2024, worked in 2025.
and if you keep your head on right, the trades you enter over the next 2 weeks will pay the amex bill in january. good luck.
what you may have missed this week
no one wants to own the stuff going up: financial institutions are betting on a renewed escalation in the iranian conflict.
its time to freak out and sell everything: betting against politics has traditionally been the winning bet.
i lose all the time: losers make more money over time.. and the math backs it up.
When the VIX Hits 36, I Start Looking to Buy: the vix gets clicks. it also pays to buy when people are freaking out.
follow the money,
hamilton
founder, The Trading Initiative