They say bear markets make fools out of both bullish and bearish traders. That’s because while stocks trade lower during a bear market, there’s typically plenty of volatility.

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Bear market rallies can come out of nowhere — causing bearish traders to lose money — before stocks resume their trend lower.

It looks like that’s what has been happening in the first few weeks of this year.

Many of the most speculative (and risky) stocks have been moving higher. After a rough bear market in 2023, traders have been putting capital back into many of these names, sending shares sharply higher.

As you’ve probably guessed, I’m not too keen on joining this trend.

Continue reading at Zachscheidt.com.
 

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