Markets Shifting in More Ways Than One

Dip anyone? Going once. Going twice. Gone! This market of the past couple years has been truly something else. It’s a thing of beauty seeing how market participants completely brushed off a global “situation”. Hope and optimism clearly propped up prices – and why not? The saying, “this too shall pass” suits just about everything in life; and the markets are no different.

It truly goes to show you how resilient we all are. Of course, you will always have those that attempt to rain on the parade, and constantly look at the glass as being half empty, but that’s their journey – it shouldn’t have anything to do with you and yours.

Yes, there is an extreme disconnect between Wall Street to Main Street – there always has and there always will be, but isn’t that the beauty of the market as a whole?

We truly are living through a major shift from the way things were to the way they are/will be. Change is something that many have a very hard time dealing with; and those are the very ones that will struggle during these changing times. Get on-board and enjoy the beginning of a new-new (not market direction), but if you choose to continue to fight change; you’ll end up on the wrong side of the scoreboard.

Whether we are just beginning another bull-run or experiencing a bull-trap, despite a disastrous lingering pandemic (with new variants popping up left and right), or $SPY testing all-time-highs anytime soon (doubtful) – it really doesn’t matter. What has been occurring in the markets since 2020 lows, has been nothing short of amazing. With the run-up off pandemic lows to 2022 wipe out – 2023 looks to be putting last year in its rearview mirror.

$SPY saw a 35+% drop from highs just before the pandemic selloff began. At one point, $SPY was up over 100% off those post-pandemic lows – it was literally as if nothing happened. Good luck trying to explain the rationale behind that – it’s like being certain that 1+1= 5.

All dips were bought up week after week, month after month – like clockwork. To say that it was a bullish environment, doesn’t do what had happened any justice.

With that said, in walked WallStreetBets. We know that this is “old news”, but believe that the foundation has been laid – the shift is well underway. To think the WallStreetBets saga was a ‘one-off’ is foolish.

The little guys got together and handed “Smart Money” their a$$ on a silver platter. To watch the squeeze, get tighter and tighter, as retail continued buying up meme stocks, was something no one could have predicted. Wasn’t “dumb money” perceived as nothing to worry about?

Not anymore!

Some Hedge Funds shut down because they just couldn’t except the fact the “so-called” dumb money got the best of them and held on too long – ultimately wiping them out. In fact, Melvin Capital lost 53% in the month of January during that time off their Game Stop $GME position, along with a few other bad trades.

We’re talking billions of dollars lost from “Smart Money”.

Take that a step further, because of the beating Smart Money took from the retail squeeze – which has never happened before, there are now departments in these firms that track where the next possible army of retail traders will strike next.

This is unheard of.

The boys on the Street, were never concerned with the “little” guy. Now, the little guy is at least part of a conversation, that they previously never were.

This is the shift we are talking about.

We’re not saying that retail traders will reign market supreme; but we are saying that the way it used to always be, perhaps isn’t the way it will always be.

The days of the open outcry are long gone. The way things “used to be” are irrelevant in today’s environment. The potential of sophistication coming out of retail simply didn’t exist “back in the day”.

You better believe it does now.

Show us a laser focused – insanely determined and disciplined retail trader and we’ll show you someone that will ultimately extract capital from the markets on a consistent basis.

Period, full stop.

About The Street Trading

Consistently Profitable.

That's The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at https://www.thestreettrading.com/

We look forward to joining you on your trading journey!