A Weekend of Remembrance
Honoring Those Who Made the Market Possible
First off – I’d be remiss not to take a moment to honor those who laid down their lives for this country.
I grew up in Annapolis, Maryland – home of the United States Naval Academy.
Patriotism and respect for the armed forces was a big part of the culture that shaped me.
When people ask why the U.S. stock market has outperformed the world for decades, the answer isn’t just economic policy or innovation.
It’s freedom. It’s the rule of law.
It’s the capitalist foundation that allows ideas to flourish and capital to move.
That system exists because men and women have fought and fallen to protect it.
This weekend, we remember them.
And more importantly, we commit to never forgetting them.
They Earned The Rest
Memorial Day weekend is one of the best there is.
It’s centered around gratitude and remembrance, two things we’re often in short supply of.
As we honor those who’ve given their lives for this country, it’s also a good time especially during a down week in the market to remember how far we’ve come.
The market was down this week. And as usual, that brought the noise.
It’s funny (and a bit pathetic) how a few red days suddenly drag out every bearish take that’s been sitting in someone’s drafts for a month.
Those takes wouldn’t have gotten clicks during the rally.
But now? Now they “make sense.”
Price leads narrative. Always has.
The “why” only gets written after the move.
But most people can’t just accept what is….they need a story.
That story only exists in hindsight.
That’s why we follow price. It’s the source. The signal. Not the noise.
The reality? The market earned a breather.
From the April 7th low of $482 to the May 19th high of $595, $SPY ripped ~23.4% in 30 trading days.
That’s an explosive rally.
It left a lot of people behind, waiting for the dip. And now that it’s here?
They’re blowing it.
Getting sucked into scary narratives that only exist now to feed our urge to “explain” something we simply don’t control.
So this weekend, while we rest and remember, don’t forget where this market came from.
This pullback? It’s an opportunity, not a reason to fold.
The strength we’ve seen should have us looking to add on reemerging strength, not giving in to the fear that magically shows up after a few red candles.
$SPY ( ▼ 0.68% ) is still above all key levels. It’s taking a long weekend after a monster six-week sprint.
S&P 500
The market earned the rest and long weekend.
So enjoy the extra day of rest and remembrance.
Don’t waste it over analyzing one week of price action.
Cheers,
Larry Thompson, CMT CPA
