…is not bearish to me! Why it would be? For so long we’ve been listening that only the FAANG stocks are pushing stock prices up. They’ve been performing very well, indeed. But they aren’t the only ones!
What will the same people who were loud critics of the stock market breath say now when clearly the small and micro caps are out performers, meaning they’re leading the market? What will happen with FAANG arguments now?
I don’t want to sound as I’m bragging or overly confident, because I’m approaching the market the same way all the time, that is being cautious where the main job is protecting my capital. But this doesn’t mean we should be afraid to be long this market as I’ve been saying for so long.
Anyway, let me share a quick overview of the US stock market in the next tweet.
— Domen Butala (@DomenButala) May 17, 2018
So, should IWM be able to hold above around 158 level I think we shouldn’t be afraid to be long. In a case of the prices closing below the level just mentioned, alongside SPX closing below 200DMA, we will have to review this thesis and become more defensive to say at least.