The SP 500 the last several weeks has been making higher highs, followed by swing lows, followed by still higher highs, then again followed by lower lows. None of the moves have been large enough to really take a big piece, even if one got the direction of the whipsaws correct. I still favor that February has a good chance at new all time highs again. I like the IWM over the SP 500 or The Nasdaq. 

However given the nature of the last few weeks, it’s almost certain many traders have been chewed up in the whipsaw. That’s okay. It’s unavoidable. What is avoidable is making mistakes of patience on top of mistakes of market timing. After a couple losses, I always sit tight. If I am not sure what the market is doing that is okay. What I am very sure of, is that the current tough environment won’t last. We’ll be back into more recognizable patterns again at some point in the not distant future. Wait for that. Play on your terms. Don’t let the market dictate, or try to force your will on the market by trading in this slop. 

Last chart I will leave you with is the unweighted SP 500. This gives equal weight to all 500 stocks in the index. It was making new highs everyday last week! So I remain looking for longs, not shorts. Bullish on 2026, but not committing to specific longs just yet with exception of a dated call option on IWM. 

Thanks,

Joe