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$SPX $SPY $NDAQ $QQQ ethereum:0x84ca8bc7997272c7cfb4d0cd3d55cd942b3c9419 $DOW $SOXX
Given the current strong rally in the equities markets, I have observed many post with comparisons to previous similar rallies to predict what lies ahead. While we must appreciate the work of these authors, I would like to provide context from a more scientific perspective.
1. Sample Size and Reliability:
Many backward-looking analyses show that the current rally off the March 30 low is so unique in its percentage gains that there are few historical parallels—often coming from only a handful of major bear market events. With such a small sample size (sometimes n=1), it is impossible to perform reliable statistical analysis.
Example, flipping a coin once and observing it lands heads up, doesn’t mean we can conclude that all coin tosses produce the same result.
Without a larger sample size (at least n=10), we are essentially dealing with randomness.
Furthermore, comparing a rally following a barely 10% multi-week correction to rallies following multi-year, 50%+ bear markets is not a direct comparison.
2. Market Nature vs. Predictive Insight:
Analysis showing improved chances of positive returns over 1, 3, 6, and 12-month periods essentially confirms short-term variability and long-term trends. Any such forward-looking comparison conducted at any given time tends to yield similar results because it reflects the fundamental nature of financial markets rather than a specific predictive signal for the current environment. Try 10, 20 or 30 years out and we’ll have guaranteed positive returns.
So, while these comparison studies have limitations and are more like narrative reinforcement than rigorous prediction, they aren’t useless, as they can offer probabilistic context—just not the kind of precision many imply. The mistake isn’t using them; it’s overconfidence in them.
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$SPX, if you added some at support, good spot to lock in some profits here in case this is just a B-wave rally. I have sneaking suspicion it is, but we'll see.
Waiting on an overall market pullback to allow names of interest to set up at better prices. The only name I'm keen on this week is $FUBO. Here is that chart as well as my $SPX analysis of a possible pullback and where renewed buying should show up.
$FUBO being added to the watchlist. Needs to hold 50sma and then I would need to see MACD curl up to enter. If a higher low is put in, this could run to $6+
Bought full position in $QUBT and $IBIT. I added to $BIIB position to make that a full position as well. All entries and notes in the spreadsheet
https://t.co/uvG7UuqciM