Dear Traders, Today was another light-volume session, as most traders and investors monitor their portfolios from anywhere but their desks. Under the surface, certain stocks continue making moves, and crypto keeps partying. Today I also had another big loss, wiping out some weeks of profit, unfortunately. As some of you may have read in my previous newsletter, we tragically lost a dear friend and valued community member, Bryan W. We are putting together a notebook filled with...

Dear Traders, This is incredible! Last week on Friday, the S&P 500 ETF, $SPY, saw its biggest single-day capital inflow on record, at $20.8 billion. Dating back to the ETF's inception in 1993, this has never been seen. Total inflows last week alone hit $24 billion, also posting a new record. On Monday, $SPY saw ANOTHER $10 billion of inflows, putting the total at nearly $35 billion since last Monday. Everyone was sure the Santa Claus Rally was really happening. But...

Dear Traders, Yesterday, I found myself in a Vancouver emergency room due to complications from my post-surgery recovery. While I patiently waited to see a doctor during a long 6-hour wait, I had the opportunity to finish an intriguing book titled "The Everything Bubble: The Endgame for Central Bank Policy" by Graham Summers. Despite the extended wait time, the book was quite interesting and full of insights. The book delves into the creation of the Federal Reserve,...

Dear Traders, Yesterday, the US Central Bank, the Federal Reserve, left rates steady, and Chairman Jerome Powell held a press conference. The Fed has shifted its stance from considering more interest rate hikes to discussing when rate cuts might begin. Powell stated that rates have likely reached their peak and a smooth economic landing is expected. This marks the first time since the Fed began raising rates that Chair Powell is aligning with the market's expectations. However, core...

Dear Traders, I've returned from two incredible weeks in Colombia, which has now topped my list of visited countries. What struck me most about Colombia is its peopleā€”their vibrant charm, zest for life, happiness, and, most importantly, their gratitude. During my surgery there with one of the world's best surgeons, something remarkable happened. On the last day, as my surgeon and I laughed and chatted to say goodbye, he thanked me for choosing Colombia and allowing...

Dear Traders, In Shakespeare's tragedy of Macbeth, Macbeth and his army's general, Banquo, encounter three witches who promise them a prophecy of Macbeth becoming the King of England. Banquo, the loyal general, challenges the witches by saying, 'If you can look into the seeds of time and tell which grain will grow and which will not, speak then to me.' At that time, Macbeth, only a Scottish warlord, could never have imagined becoming a king. As the...

Dear Traders, The human soul, in nature, is not inherently greedy. However, over the course of our 5,000-year civilization, we have developed both individual and collective forms of greed. Each person desires more, while society as a whole can also exhibit greed. A historical example of societal-level greed can be seen in the practice of colonialism during the European imperial expansion from the 15th to the 20th centuries. European powers sought to acquire vast territories in...

Dear Traders, Our brains guide our actions and decisions. When your mind is cloudy and unclear, making sound choices becomes challenging. This is a fundamental rule of life. As some of you may know, I underwent surgery in Colombia over the weekend, requiring six hours of anesthesia and potent painkillers. I spent Saturday night in the hospital and recovered at my Airbnb on Sunday. However, I decided to trade on Monday, not realizing that my mind was...

Dear Traders, Today, we witnessed a very strong market, especially led by IWM small caps. As you know, I've been long in TNA for a few weeks, and today, I am enjoying the benefits of a massive gain in this 3x leveraged product of IWM. I still hold the position, with my target set on IWM reaching near $200 levels. Brian also bought some TNA today at the open, live in front of everyone, and he's...

Dear Traders, Today, Thor and I traded at the open, as Brian was delayed in Bogota due to a missed flight but should be back in Canada for tomorrow's trading session. Trading was excellent, with the US GDP reporting a 5.4% growth for the past quarter, significantly higher than expected. The resilience of the US economy in the face of surging interest rates is truly remarkable. I executed one of my favorite trading patterns, the Bullish Engulfing...