🍔Is the Correction Over?

Markets rebound on Fed cut hopes

My mentor often told me, “You can be wrong but don’t stay wrong.” Last week, we were bearish and exited positions. The price action this week told us we were wrong, and we’ve had to reverse.

Markets are humbling, and we will be wrong a percentage of the time. The key to longevity in trading is figuring out when you’re wrong, and quickly.

In this week’s post, we regroup and make a directional call for the year end. Is the November correction over, or is there more downside to come?

The liquidity pothole has sent momentum stocks down 30%-50% over the past few weeks. But we think the correction is over, for now, and our signals are pointing to an improving environment.

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The rest of this article is for premium members. Today’s post covers:

• Is the correction over?

• Interest rates and liquidity

• K-shaped economy and the low-income consumer

• The rebirth of Google

• Technicals and our revised portfolio