Here's the Upside in Redefining the Bull Market
By Brandon Chapman, CMT
What's in a name? I asked our TheoChat trading room members whether we're in a bull or a bear market. A clear supermajority replied that they felt we were in a bull market. When I asked how they defined it, the typical answer was, "higher highs and higher lows."
But the answer just prompted more questions…
When determining whether we're in a bull or bear market, does it come down to price trends? Or is there something more encompassing? Does a bull market mean buying anything and everything in hopes the rising market tide will lift your boats?
From a technical analysis perspective, at least, there is a distinction between bullish trends and a bull market.
"Semantics!" you say… and you're probably right since there's actually little point in defining the market in such black-and-white terms.
In the end, markets are better defined based on risk. When risk is elevated, it may shape how you approach the market. It may determine whether you are holding more cash and are hedging your risk. If we're afraid to acknowledge risk so we can feel bullish, maybe we need to redefine what a bull market is right now!
It's good to be proactive in thinking about these questions. After all, with tariffs galore, we're in uncharted territory - from a policy perspective
Tonight, let's push ahead and see where the risks and rewards are in this market…
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