Hey Guys,
The market seems to be in a good mood recently. The S&P 500 is back up near 4000 after being in the high 3800s a couple days ago. Some days the market is scared about the looming interest rate hikes and inflation, and other days it doesn't care.
It's actually a lot like a normal human psyche. Last week the Fed chairman made a comment that suggested another interest rate hike could be coming, and the market got really upset and went down hard. As humans, we sometimes mentally catastrophize when we hear bad news, similar to what the market did (and sometimes rightfully so). And then after some time passes, that thing that seemed so terrible has kind of been accepted and is no longer at the forefront of our minds. And we no longer feel like we're in the dumps, and we might even feel some hope again. That's similar to what the market seems to be going through now. It's slowly starting to ease back up.
That all said, we're still in the midst of volatility. And to continue with the analogy, it's like if someone reminds us of that painful thing again, it could really sting (i.e. cause the market to go down) because the mental wound may not be fully healed yet.
So there you have it. The market is just like a human.
Which means it's very complex!
I closed my CPB position this morning for a profit since it reached its time limit. All my other open positions are also showing a profit right now. Both my options positions reached their time limits today, so I'll be closing those near the end of the trading session today.
There have been no new trades yet today. It's been a light trading week. Some weeks are overflowing with trades, but this one has been very light.
If you have any questions or feedback, I'd love to hear from you.