Faltering Thursday – Wrapping up the Best Month Since 1974

Image result for money printing animated gifThe BEST month!

That's right, speaking of cognative dissonance, while you were locked up (Trump did promise he'd do that) for the month, the Stock Market had it's best month in almost 50 years, now up 34% from our March 23rd lows.  We just reviewed our Member Portfolios in our Live Trading Webinar and they are up along the same path.  Fortunately, rather than just recovering with the market, we called the bottom right on the money and added to our positions, leveraging the 34% gains quite nicely – so now we're having a great year – in captivity.

The difference between being able to act when they market is down and not being able to act is night and day for your overall returns, that's why we always keep a healthy amount of CASH!!! on the sidelines – even in the best of markets and we always scale into (and out of) our positions. Which brings us to today's topic – should we take our money off the table?  

CH 20200429 SP500 looking for a bottomWe have some truly ridiculous gains in our portfolios thanks to this epic bounce and we're coming back to test the 200-day moving average on the S&P at the 3,000 line and we didn't think we'd get back over our Must Hold line at 2,850 but, on the other hand – as I said back on March 24th: "Turnaround Tuesday – Yes, $3Tn is a LOT of Money!"

That was my estimate of the stimulus at the time and that's why we called the bottom but, by Wednesday, we knew that the Fed's contribution made it more like $6Tn (now $6.5Tn with the second round of SBA loans) as I qupted on 3/26: "Federally Funded Thursday: “We are Not Going to Run Out of Ammunition” – Powell."  The Fed Chairman reiterated that comment yesterday but also warned that the Fed can't do this alone and needs fiscal support from the Government as well.  Do I hear $9Tn?  

JPow Jerome Powell GIF - JPow JeromePowell MoneyPrinting ...As investors, we don't really care, FREE MONEY is FREE MONEY
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