Are We Out Of The Woods?
|Jun 6|| 1|
If you read my recent piece “How To Place More Effective Stops,” it will be no surprise to you that as a kid, my favorite time of the year was when the local TV station ran the classic Japanese sci-fi movie Voyage into Space.
The movie centers around a precocious 12-year-old named Johnny Sokko, who, through a series of misadventures, becomes the de-facto owner of a 100-foot tall weaponized robot, creatively referred to as “Giant Robot.”
Over the course of the movie, Giant Robot battles a series of monsters - not marquee names like Godzilla or Rodan - but D-listers like Dakolar, Drakulon, Dorogon, and who could forget, Opticon – the giant floating eye.
Each episode follows a similar pattern.
After a series of initial plot intensifying setbacks, GR eventually remembers that not only is he indestructible, but, he possesses a wide arsenal of weapons, including, finger missiles, a back missile, a bazooka cannon, radion eye beams, a Flying-V missile, a flamethrower, and electric wires.
And with that realization, G-Robe unleashes a combination of said weapons, easily vanquishing his foe.
Except for Gangar – the killer vine.
You see, with Gangar, weapons have the opposite effect. The more you throw at him, or it – I don’t want to misgender a vine – the stronger it gets.
Fire finger missiles, and it gets stronger.
A bazooka cannon? Stronger.
Radion eye beams? Stronger.
Nothing Giant Robot throws at Gangar can slow it down.
Right now we’re in the middle of a Gangar type market.
We go from 100 to 100,000 pandemic deaths, and it gets stronger.
Record unemployment numbers? It gets stronger.
Massive social unrest? Stronger.
Nothing can slow it down.
Eventually, after destroying almost all of Tokyo prefecture, Johnny Sokko - suspecting Gangar is long equities - convinces Giant Robot to lobby the Bank of Japan to raise rates, which stops the monster in its tracks.
Ironically, higher rates are probably the only thing that could slow this market down.
How strong is this market? Here’s how my friend Ryan Detrick (@RyanDetrick) frames it.
And this was on Wednesday, after which the S&P 500 tacked on another 2.3%.
Brian Lund @bclundIt’s official. After trading for 33 years, I’ve never seen a market like this one.
It’s jaw-droppingly amazing to me that we are where we are in the market given what we’ve seen happen over the last two and a half months, but we are.
And as we will see in a moment in the “Market Review” section, the technicals are extremely strong, continue to improve, and we’re seeing the type of rotation needed to turn this into a broad-based rally.
I still find it hard to believe we can emerge from all this economic destruction so easily, but maybe that destruction will be short-lived.
Out here in SoCal, bars, restaurants, and shops are packed again. Most are going through the motions when it comes to social distancing and occupancy reductions.
When I stopped at an Irish bar by my house the other night, there was none of either.
In addition, none of the customers were wearing masks, nor were the bartenders.
Perhaps this is a signal that the public is ready to get back out there, sparking the economic engines to fire up again, which would bring jobs back quickly.
Again, from Ryan.
We may be back to normal - the real normal - faster than anyone could have imagined because currently, that’s what the market is pricing in.
If you desired to change the world, where would you start? With yourself or others?
Ever get the feeling you've been cheated?
This is the part of the Lund Loop newsletter where I usually say, “Stick with me for a moment while I tell you a story. I promise it will be worth it.”
Given the events of recent days, a story doesn’t seem appropriate this week.
But, I still have something to say.
Over the last week, you’ve no doubt been told – from all sides - how you should be thinking and feeling.
Trust me when I tell you this - pay no attention to this noise.
The world is broken down into two types of people – the decent and the indecent.
The indecent are a lost cause and the decent know what to think and how to feel.
It’s the doing that’s often the problem.
But not because of ignorance, apathy, or prejudice, but reality.
The fact is most people, no matter what their background, are just trying to keep their own shit together.
To keep from going off the rails.
We all have limited resources.
Limited mental capacity.
It’s not that we don’t care, but we’re doing all we can to pay the bills, keep our marriage together, support the elderly parent still alive, and unfuck ourselves from the emotional crap the deceased one heaped upon us while still here.
We’re working pointless, unfulfilling jobs for unsympathetic bosses - 10, 12, 16 hours a day - battling our depression, anxiety, and lack of self-worth, trying not to let our autistic son and ADHD daughter - who is cutting herself in the shower - know that we’re faking this shit, only a hair away from having a total nervous breakdown and moving into a cave in Bolivia.
And the relativity card doens’t work here. Humans aren’t wired that way. It’s a non-starter and the worst strategy to effect change - real change.
People don’t feel any better about their situation knowing there’s an active genocide in Darfur, that Catholics and Protestants are blowing each other up in Belfast, or that someone two cities away has it way worse than they do
But, still, we have to do something. We want to do something. We have an obligation to do something.
So write that check – or checks – if you can, but there’s something better. Something more substantial. Something longer lasting and potentially life-changing.
And in one of the rare loopholes in life, it’s both the easiest and most impactful thing you can do.
Share your expertise and experience.
There are only a few things I feel I know enough about to help others with.
For example, I’m a decent drummer, but I’m not the guy to help you learn how to play the drums.
Here’s what I can help with.
Being an annoying know-it-all who likes to shoot his mouth off.
Trading and investing.
There’s not much benefit in learning how to do the first two.
And if you’re here, you’re probably not here for the writing – though if you need help in that area, I’d be happy to connect.
I believe that no matter if you are an active participant or just an interested observer, learning about markets, trading, and risk/reward is one of the most empowering things you can do, and brings with it lessons that translate into every aspect of life.
It is a proactive way to take control over the course of your life.
Over the last 20 years, I’ve talked with thousands of new traders and investors in person, on the phone, or online.
I’ve never cared what race, religion, gender, socio-economic background, or education level they came from – and I never will.
The markets offer equal opportunity. They reward or punish everyone without prejudice.
So, if you are interested in learning about trading and active investing, I will help you.
But particularly, especially, if you’ve thought that because of your race, religion, gender, socio-economic background, or education level that trading and active investing is something inaccessible to you, I’m here to tell you that you’re wrong.
And that I will help you.
Here’s a link to my email.
Hit me up and we’ll talk.
Okay, let’s get to the charts…
If you’d like to read the rest of today’s Lund Loop newsletter, it’s super simple. Just take my free, no-obligation, no catch, 30-day trial by clicking the button below, then check out the Subscriber Only version of this newsletter.
Thanks for reading this week’s edition of The Lund Loop.
I want to hear your opinion on these or any other topics you see fit to pontificate on.
So drop me a line.
Talk to you soon.
P.S. It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.
Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.