IncomeSharks

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It's incredibly rare to get two consecutive down years which has only happened 3 times:
Hoover 4 consecutive down years
Bush 3 consecutive down years
Nixon 2 consecutive down years
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The markets won't crash as much as the bears think, and the dips won't be as easy to buy as the bulls think. The truth often falls somewhere in the middle of the extremes.
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The best 3 entries in the stock market the last 20 years? The 3 largest dips on light crude oil futures.
The 3 best times to sell in the last 20 years?
The 3 largest price increase in oil futures
Oil futures topping leads to more stock selling, not bottoms.
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Making 100% one year and losing 50% the next means in two years you spent all that time to break even.
Retail isn't bad at trading, they are terrible at stopping while up (we've all done it).
Solution? Years you beat the market, put that money into the S&P 500 to preserve it.
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Last time the VIX acted like this was in 2022.
A 27% drawdown from the start of the midterm year to the start of the midterm rally that lasted 9 months without any major blow off VIX spikes.
Best part of a Midterm year though? Great entries.
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S&P 500 - We don't have a setup for a V shape reversal. It's the same reason we didn't get a blow off VIX spike. This is not a repeat of April 2025, it's much closer to a repeat of 2022 in almost every way. Dip buying will work but plan on stomaching more downside first.
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The markets don't bottom when the price of OIL tops, it's actually closer to the opposite. The best 3 time times to buy stocks the past 20 years were all at the lowest prices of OIL.
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Bitcoin squiggles still alive. Super trend still bullish somehow. Do I feel as confident in them, absolutely not, but there's still a chance.
BTC0,23%
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Trading is annoying because in hindsight it's always simple and obvious but during the actual tops and bottoms it never feels that way.
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Everyone's talking about Iran, what about US unemployment that's been rising since 2023 that's expected to go up yet again this Friday.
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It's a good thing social media wasn't around back then, imagine the tweets during this 15 year period.
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There's only been 3 presidents in 100 years where the stock market finished worse off than when they took office.
Hoover 1929 (Great Depression)
Nixon 1969 (Great Stagflation, Inflation, Nixon Shock)
Bush 2001 (Dot Com bubble, 9/11, 2008 global crash)
"It's never been worse"
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One of the most valuable pieces of information out there would be the phone records of a financial advisor. I would bet the days that the phone never stops ringing from angry people wanting out of the markets would all be within 1 month of every local market bottom.
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Every financial app should automatically close 25% of your position every time a screenshot is taken.
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$KHC - Bullish on ketchup and Mac n Cheese here. People still have to eat.
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2022 and 2026 midterm years have more in common than are different. I was really hoping for something different but once again we see Energy on a big push while tech is on a big push down. Will make for good tech entries at some point this year.
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Dapplequesvip:
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$META - One of retails favorite stocks. 97% of revenue is from ad sales. Strong growth but when tighter consumer spending habits form and businesses spend less you get a repeat of 2022 to 2023.
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It's fair to say you've never seen social media and sentiment "feel this bad" but it's not fair to say you haven't seen the markets worse. Last year we dropped 22% in a month. In 2022 to 2023 we dropped 27% and had 9 months of down only. And in 2020 we dropped 35% in a month.
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In the past decade the S&P 500 has only had two red years (both midterm years). Retail never complains at the insane and abnormal gains year after year but we will see a lot quit or capitulate this year because the emotions of losing are twice as powerful as winning.
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By the time you become a geopolitical expert in one conflict it's time to move on to the next. This is why bulls retire and bears sound smart short term but end up underperforming long term.
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