You have to remember that volatility contraction leads to trends and volatility expansion is the death of trends $QQQ $SMH.
A multi week or multi month base would be healthy.
In my mental model, the length of a correction depends on the type of catalyst.
One-off shocks: war, tariffs, assassinations, sudden policy headlines can be violent, but they often V-shape if they donโt change the macro regime.
Macro catalysts are different: sticky inflation, debt stress, tighter liquidity, or a Fed policy shift.
Those tend to create longer, more grinding corrections because they change the underlying regime.
So if inflation is truly sticky and the Fed is moving more hawkish, we should probably remove the assumption of a quick V-shaped recovery.
"Focus on tight ranges. Doesn't matter what time frame. Tight ranges is all you should focus on. Wide and loose is for losers and tight is for winners."
โ@Qullamaggie
We do not have that right now.
๐ค ๐๐ฎ๐๐ถ๐ป๐ด ๐ต๐ผ๐น๐ฑ๐ถ๐ป๐ด ๐ฎ ๐น๐ฎ๐ฟ๐ด๐ฒ ๐ฝ๐ผ๐๐ถ๐๐ถ๐ผ๐ป (๐ฎ๐ป๐ฑ ๐๐ฟ๐ฎ๐ถ๐น๐ถ๐ป๐ด ๐ผ๐ป ๐๐ต๐ฒ ๐ ๐ผ๐๐ถ๐ป๐ด ๐๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ๐) ๐ถ๐ ๐๐ต๐ฒ ๐ต๐ฎ๐ฟ๐ฑ๐ฒ๐๐ ๐๐ต๐ถ๐ป๐ด ๐๐ผ ๐ฑ๐ผ.
๐๐๐ ๐๐ผ๐ ๐ป๐ฒ๐ฒ๐ฑ ๐๐ผ ๐ฑ๐ผ ๐ถ๐.
Itโs scary. Itโs one thing taking a big loss, but itโs another thing holding a big profit, and especially if itโs a profit thatโs bigger than youโve seen before. Thatโs one of the most stressful things ever. Itโs just so scary, but you really need to believe it can go further in your direction.
Thatโs really what happened on TSLA. I was up 650k, I thought it was gonna go down another 50, 100 bucks, and then it just reversed back higher and I gave back most of that profit. But then I re-nailed it, and that was a big one. You really gotta believe it will do what you think it will do.
As the market opens higher this morning, it's important to remain disciplined and avoid chasing an early rallyโespecially following a significant down day and a weak close on Friday.
One of the most common mistakes investors make is assuming that the first bounce marks the start of a sustainable advance. In many cases, the initial rally is simply an oversold reaction or what traders refer to as a "dead cat bounce."
Historically, after a sharp decline, I prefer to give the market timeโoften until midweek or even the end of the weekโto see whether buyers are truly stepping in with conviction. Very often, after the first reaction higher, the market resumes its downtrend, undercuts the recent lows, and additional damage occurs.
Patience and selectivity are critical. Let the market reveal its true character before becoming overly aggressive. Focus on preserving capital, managing risk, and allowing the price action to confirm whether the move is the beginning of something meaningful or merely a temporary bounce within a larger decline. https://t.co/JXzFFTmMtn
Qullamaggie on Minerviniโs Small Account Size
โMinervini is up 320%? Yeah but whatโs his account size, 500k? He trades these illiquid stocks. And thatโs notโฆ Thereโs nothing wrong with that. If youโve been in the business for a few yearsโฆ
But if youโve been in business for 30 years, you should be worth a few billion, not sell subscriptions. Just my 5 cents.โ
Credit: @lonextrades
Small accounts are in fact easy to grow. The real trouble/challenge is in growing a large account.
PS: Qullamaggie calling a 500k account small is just epic ๐ฌ I really miss his twitch streams
Laut aao Bahubali ๐ฅฒ
My interview with Richard Moglen and TraderLion!
I rambled quite a bit but hope you get something out of it! Now open to watch for everyone.
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