Was the trading action over the past seven days just the pause that refreshes this bull market?
Today sure felt that way.
A lot of high-beta positions in the ASO portfolio bounced hard — some even printed new highs since we entered them. Strength returned. Momentum picked up. There was a spark again. The kind that reminds you that trends do still exist in this market, even if they occasionally disappear behind a fog of chop and frustration.
But let’s not get ahead of ourselves.
Let’s take our time — but not delay.
There’s a difference.
This is not the moment to recklessly chase back into names you puked out at the lows. I get it. We’ve all done it. We panic. We overreact. We manage risk — which, to be fair, is never the wrong thing to do. But after a strong bounce, our natural instinct is to get it all back, right now.
Don’t do that.
Make sure the setup is still valid. Make sure your entry still makes sense. Make sure the trade still fits your plan.
Or… wait.
Wait for confirmation. Wait for new highs. Wait for volume. Wait for momentum. Patience might cost you a few ticks if this really is the resumption of the uptrend. But impatience? Impatience can cost you a lot more than ticks — it can cost you conviction, mental capital, and your sense of control.
If this bull market really is alive and well, it’s going to give us opportunities. We don’t need to sprint to catch the bus.
It’ll circle back.
Sean McLaughlin | Chief Options Strategist, All Star Charts
