One Current Market Observation:
I did a great job identifying the top in froth. Since then, the most run-up sectors have pared back significantly. Quantum and nuclear are well off of highs, and Bitcoin has fallen into correction territory, retracing from $120k to $80k. Newsflow has slowed down, and good news is increasingly getting faded as people tire of the same repetitive AI deals. It is important to note how quickly sentiment can change. Just one month ago, anything and everything around AI was driven by exuberant price action. Is this downmove the start of something bigger? I don’t think so, but I’ll let the charts guide me either way.
One Nugget of Trading Wisdom:
One of the most important advanced skills in trading is the ability to turn on and off your level of risk-taking very quickly as market regimes change.
One Reflective Question:
If a near-term top is in for froth and momentum or if we are entering a slower market period into year-end, what changes and safeguards do you need to make for your trading?
One 1%-Improvement Idea:
If December slows down, it’s a great time to work on an annual review as well as all the different research projects that probably got pushed aside during one of the most active trading years ever.
One Reading Recommendation:
For a little break into year-end, check out The Red Rising dramatized audiobook adaptation! I’ve put so many people onto this series, and they all love it!
Forget outcome. Let’s get better this month.
