One of the best concepts about relative strength that I've heard is from @OliverKell_ who emphasises to focus on stocks that are ahead of the market cycle.
Which stocks got back above MA's before the market?
Which stocks hit new highs before the market?
Many will look at the list I shared in the quoted tweet earlier and think they're not participating the last few days and that is a sign of weakness. It's not.
They broke out before the market and now we're seeing rotation in to more lagging names whilst they rest.
But don't lose sight of them, because the market will eventually consolidate this strong move and those leaders that have already been consolidating will likely then resume their trend whilst most stuff rests.
Last thing you want to do is focus on the new, shiny laggards that are playing catch up and miss those leaders because they're going through a natural consolidation.
Focus on those ahead of the cycle.
You start to make so much money in the bull market you feel like you don't deserve it. It's filthy.
But after waiting so damn long through all of the lows it doesn't feel so filthy anymore.
We deserve it.
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George Soros needs no introduction.
He broke the Bank of England.
He generated a 32% CAGR for 30+ years.
He taught Stanley Druckenmiller the trading ropes.
$1,000 invested w/ Soros would have been worth $4M+ by 2000.
Here are five trading lessons from The Palindrome ... 🧵
Assets prices are at their weakest levels in 40yrs. Not necessarily a buy at these levels - it took another 10pct down to break inflation 80s.
Looks like the Fed has more work to do, but watch this closely bc at some point in '23 assets will become a great buy.
Thread on '23.
Me in January 2022:
• School Teachers insulted parents
• Played PUBG the whole day
• 0 social media presence
Me in December 2022:
• Earning more than School teachers
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One year can change your life, my friend
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Allan Mecham is one of the greatest investors you've never heard of.
He generated a 33% CAGR over his first 12 years and was positive in 2008.
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The most valuable thread you will read this year.
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