Hello Trader, BTFDs have crashed the bear party yet again, after swooping to buy the early-October lows and driving the index to new all-time highs this past week. The 09/02 through 10/04 correction that preceded the rally of the past two weeks was the first correction of > -5% for the benchmark S&P 500 ETF (SPY) since October 2020. Historically speaking, this was one of the longest stretches in history that the S&P 500 went without a correction of 5% or more. When put into context, though, a -5% correction is rather small, and many market participants were looking for a larger decline that approached closer to -10%. Throughout history, when the broader market has witnessed smaller than expected corrections, sharp rebounds similar to what weâve seen from the S&P 500 these past two weeks have occurred. More often than not, what has been one of the key ingredients in the formation of these rebounds? Fear of missing out (FOMO). In environments such as this, finding trades might be more difficult than you initially think, as shares of many good companies have already taken off. I get it⦠watching a trade run without you is always tough. In times like this, you must control your emotions and remember that stocks mean revert (i.e., correct lower in uptrends and correct higher in downtrends). Therefore, patience should be rewarded for traders willing to wait to buy during pullbacks. As I am about to show you, however, this is the time of year when the potential for the market to get away from us is this heist it is all year. [Continue readingâ¦â¦]( P.S. The weekend kicked off with the small-caps world putting on a show. DWACâ¦.. PHUNâ¦â¦ CNTX to name a few were action-packed and now many traders are itching for what next week holds for us. Jason Bond will beLIVE tonight at 7 PM ET]( with his new weekly watchlist and more, itâs aConnect the Dots]( session to see! Jeff Bishop RagingBull, LLC
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