Getting Choppy – Check Your Shocks

You’ll hear many anecdotes:

  • it’s month end
  • it’s quarter end
  • oversold – need to rally
  • Rotation into value
  • there’s some value here in the stocks down from highs (my favorite)
  • rates are rising which is a sign of economic strength
  • rates are rising and it’s going to slow growth

All the above is true in part – but the trend is going to go where and when it goes. We likely have some choppiness ahead here as I expect this market to be confused. That means the day traders are set to have some good times over the next month or so.

You need to relax and stick to your plan – whatever that is. if you’re a value guy, don’t become Mr technicals. And if you’re a trader and one of your handy go to trades goes against you, don’t become an “investor” on that trade. However if the market dynamic changes (market turns from bull to neutral or to bear or vice versa), your style or expectations need to change too.