There’s a lot of buzz about the General Electric head fake after earnings.  It’s as good a time as ever to remember that weird shit happens in downtrends.


Really nothing should catch us off guard in downtrends.  People lose their heads when things go against them.  Assets making new lows are held by desperate people trying to get out.

Make no mistake, holders of GE are desperate.  The stock is now a smaller part of the S&P 500 than it was at the financial crisis lows.  It’s unfortunate, but this company is just dead weight to portfolios.


The sanest thing you can do in downtrends is sell strength.  Everything else is at best guesswork.

Trade ’em well