Don't Stop
Do you remember that insanely hot girl (or guy) you dated that really knew how to "Knock your socks off"? You know, the wild one that could never get enough but drove you fucking nuts in the process. Your friends (correctly) thought (s)he was batshit crazy and you always fought, but the sex was good. Damn the sex was fucking good.
When you weren't tearing each other's clothes off, you were close to tearing each others heads off. The highs were insanely high, and the lows were salt of the earth low. That's kind of like what the stock market is like right now. Just two weeks ago, we were on the verge of staring into an abyss. Today, we are all orgasmic.
KEEP COOL
That girl we just mentioned (or guy), do you remember how you got them? It just sort of happened right? You likely fucked up along the way but didn't overdo it and didn't overstep your bounds. When it "mattered" you performed and things worked from there. You never got too high and you never got too low. You took it for what it was and had fun with that person.
I bring this up because it seems like that is where the stock market is right now. She's a hot and cold crazy psycho bitch. But she's fucking hot and when things are great, she's fucking great.
I want to emphasize to you right now that this hot crazy bitch is not someone you are going to marry or take home to mom and dad. Get that through your thick skull right now and you can continue to have the time of your life with her and have the highs of your life. If you don't understand this, you're going to lose you shit, get needy and indecisive, and get left on the corner disillusioned and lonelier than the last man standing.
FLAVOR OF THE WEEK
The thing about crazy hot chicks is that they're always on to the next bit of drama they can seek. This week it's Tom with a motorcycle and a record, next it's Kyle the pro athlete, and the following its Dwayne the hedge fund guy flying her to Dubai for the week. Her entire life at this point is one high to the next and she needs to keep revolving that door to keep it going. A quiet Saturday watching movies ain't gonna cut it with this chick, you gotta keep her entertained.
If we know that the market is a crazy hot chick, and we know that crazy hot chicks need to stay entertained, we should be able to understand what is going on in the market at this point in time.
Right now, she (the market) is courting suitor after suitor. She's the gem of the ball and everyone wants a dance, but she has her pick.
THE BIG BOYS
A few weeks ago, she was into the younger guys who no one believed in. The ones that knew of the underground parties and had records. She believed in them. They were fun and
got her" like no one else. That was thrilling and all, but she likes nice things and the weekends at the Hamptons are fun.
What do I mean by this? Go through your list and get rid of (for now) all the small cap garbage that hasn't moved out of a range for weeks. The TWTR's of the world, dump 'em. If we take a look at the IWM as of late, we see this confirmed.
In the above chart you'll see that the IWM, which at one point was basically the leader of the bull market, has stagnated and is not really moving much. We can speculate all we want about why that is but let's not. Let's just focus on the reality; it's slowing.
So if it's still the leader that means that the other indices should follow its lead. Let's see if that's the case.
When we look at the three major indices, the Nasdaq, S&P, and the Dow we notice that they are not following the lead of the IWM anymore. They have separated and have started to do their own thing. Of the three, the Nasdaq is clearly the one that was least impacted and appears to be the strongest, followed by the Dow, and then obviously the S&P.
If we take a look at some of the components of these indices we can really hone in on the hot chicks love interests.
Remember, our chick is super hot and crazy and she only likes the rich ones right now.
DJIA
The DJIA components are the largest components of the market. The blue chips. These are the stocks that the big funds around the world mostly dabble in. We're gonna take a look at the most recent sexiest stocks in this index.
The above charts serve proof that once the flash crash on August 24th resolved itself, these big name stocks have slowly and consistently gone higher and higher. Our favorites of the bunch are MSFT HD NKE and V (in no particular order).
NASDAQ
Usually the most volatile and moonshot of the bunch, the Nasdaq has actually been quite tame relative to the other indexes. It has fallen the least of the bunch, but it also has not exploded to the upside like you'd anticipate. This is because the IBB and its components which were our leaders in the past are now dumped by our hot girl while she seeks new suitors.