10 market rules to remember

So I went down a short rabbit hole.

After typing up today’s quote, I wanted to see if the author was still alive (I didn’t find any mention of his death, but I did get distracted first... )

Turns out that he was famous for writing out ten market rules to remember back in the dot-com bubble (1998). And since we’re in a big bull run right now, I thought I’d share them with you (source: Wikipedia):

It’s been well over twenty years since he penned these rules, and they’re just as relevant today as they were back then. 

I encourage you to to think about these rules as we dig into today’s headlines... 

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Ever since Trump released the big tariff graph back in April -- and the market’s initial puking reaction to that chart -- tariffs have become the favorite villain. Bad earnings reports (such as GM’s yesterday) then blame the tariffs. A small market correction? Probably gonna blame the tariffs. 

Anyway, as you know, I’m bullish about July but also expecting August to be a bit of a pullback with the tariff deadline hitting. Personally, I think it will be a bit of an overreaction, but the markets aren’t driven by logic -- much as we’d love to believe -- they are driven by emotion. And Mr. Farrell told us that fear and greed are stronger than resolve.

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Nothing moves people to action like a looming deadline. I believe many countries are now scrambling to try and get deals done last-minute, which for a master negotiator like President Trump, plays right into his strong-position hand.

We’ll see how much “desperation” and “neediness” go into making these deals. I suspect the US will come out with some pretty lucrative deals in the next couple of weeks because the worst time to make a deal is when you NEED to make a deal.

The best time?

When you can patiently wait, of course. (This logic applies as much to buying & selling stocks as it does any other kind of negotiation.)

Comments: I’m seeing a bit of a flush in the markets today, particularly the tech stocks. Overall, I don’t think this is the right time to aggressively open new trades, it is a much better time to patiently sit on cash and wait for the markets to bring in better looking setups that are “on discount.”

Bitcoin is up, but it’s been trading sideways around the 120k zone. I wonder if it will get a little pop into 125K? I’m not making any new trades with that in mind, but it is interesting to watch.

Like I said, this week feels more like a “wait-and-see” week. 

That said, I have two aggressive trade ideas to share for the Premium subscribers who want to open a trade today and bring in around 1.7% over the next 10 days...

First of all, know that I did take this trade (and the next one). I have the cash available this week and I like both these trades enough to jump in.