Throughout about 100 years of stock market history performance, the consistency of how the market reacts has never changed. The 4 stages of buildup to euphoria to fear/panicthen denial, has remained a constant. The emotions of investors are also a constant. We need to use this consistency to help us invest. I've learnt that being contrarian is the way to make the most money. You cannot make money by following the crowd, or rather you won't be making much if you follow the crowd. In fact, bulls make money, bears also make money. But pigs get slaughtered. Don't be a pig. Be a contrarian and make money. 

The greatest danger zone is also where most money is made. That is why dip buyers come in to test the waters because they are certain they cannot time the bottom but if they probe enough, they will be able to feel their way through and eventually catch the right part of the wave up. To borrow a Christian term, the Fed gives and the Fed taketh away. This is true of liquidity in the markets. When Fed was easy on money and did QE, liquidity flooded the market. It became amplified in 2020 and when fear was the greatest during the crash, i was buying up stocks at rock bottom prices. Being a contrarian was where it was. When people were dumping and crying mother and father, that is the time to buy. Not the time to sell. Ditto this period. I cashed out and waited a few months for this to happen. And i am glad the opportunity is just showing up. After judging the market movementeach night, I can see dip buyers employing the same sentiment. They are testing for the full trough. But it is not yet time for a full scale in. The indices have just started to fracture and support lines are giving way. You can see them breaking through r/s lines clearly and all the 200 day EMAs. 

If you take the graph of the small caps (soldiers) and match them on the same graph as the mega cap (generals) stocks, you will see the gaping "alligator mouth". One trader said it well - when the soldiers do not follow the generals, this is where you have to watch it. And indeed, it has happened again. History never fails to teach the same lessons. It is because investors keep failing to learn. Those who think "this time is different" are the ones who got the "F" on this test. It has never been different. Not one stock has ever not been shot. And this time round, they have already started to round up the generals to shoot them, which is why it is also reflected in the indices. Look at the FAANG, and you will know that this is not over yet. 

The last QT (quantitative tapering), the indices cracked by 20 to 25%. It was wicked and there was blood. But with this, we also see the world's BIGGEST opportunities to make A LOT of money. Just go on Twitter and when you see Moonboys crying about the margin calls, and coming out in silence, some going back to McDonald's to work, you know that we have just about hit rock bottom. The Fed will ease up at some point in time, because to the US Govt, the market is the economy. We know this is not true, but this is the perception. And history continues to rhyme in this manner. So while you buckle up and stomach another 15% to 20% decline, know that the tech and growth stocks will bottom BEFORE the indices. And dip buyers will keep trying to catch the bottom. So don't wait until the indices recover fully. That will be too late. And please, it is not the time to sell. The time to sell is way over. Always skate to where the puck will land. 

All the best!