It's Over Johnny. It's Over!
May settled a lot of market debates.
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May was a very busy month in the Lund house.
In addition to Mother’s Day and my son’s birthday, In May my wife went to Hawaii, I worked my daughter’s school festival and chaperoned my son’s graduation celebration at Knott’s Berry Farm, and the whole family went to Texas for a week.
May also settled once and for all some of the recent debates amongst investors.
Take for example those who thought the market didn’t bottom in October and were convinced we were going to have another leg down.
After a 22% rally off the lows in the S&P 500 and 39% for the Nasdaq, that debate is over Johnny.
So too does May end the idea that big tech couldn’t get bigger.
Or that already up 100% year-to-date, the ceiling was in for NVIDIA.
Or that a narrow-based rally couldn’t turn into a broad-based surge.
(That happened too.)
So many of the stories investors told themselves these past 8 months died ignoble deaths in May.
Now that things are quieting down on the domestic front, it’s time for me to do a “reset.” To sit down and review all the things I need to do, those that I put off until after my busy month was done.
Stocks and indexes have broken out and some are quite extended and in need of a reset as well. A rest of sorts via either price or time to set up the next low risk entry points.
Many investors also need to do a mental reset and acknowledge that the bear market is done.
Now let’s see what comes next.
It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.
Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.