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Stocks gave back all of Monday’s gains and then some today. Monday’s panic buyers were mercilessly punished for going nuts during the spree.

Frankly, I’m not surprised by today’s plunge - I actually find it encouraging. That’s because a period of sideways price action will provide fuel for an even more powerful rally down the line. Bonds are putting pressure on stocks right now, and the energy sector is going to have to roll over to bring some relief to interest rate fears.

Even crypto, which treated us very well in the back half of 2024, is under momentary pressure. But here we have too many traders chasing a move.

This brings me to the correct move in these situations. In a two-sided market, traders who chase every rally or short every pullback are the reason patient traders like us make money.

And so the right response here is to practice patience, wait for strong setups… and check out tonight’s video…

Video Length: 00:09:18

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