Good Friday morning. For those in the US we hope your Thanksgiving was a good one. Today is a half day of trading with US markets closing at 1PM EST.

Quick recap; after hitting ATH’s at the end of October, November came in like a bear, featuring a rough 3-week decline that then bottomed a week ago Friday. Nasdaq may have dropped 8% during this shakeout but the average stock fell >30%. From 2018 on we’ve seen a number of very similar short-lived shakeout (5 in fact).

We believe we have enough evidence to call this a repeating pattern of significance. Instead of multi-month/year bear markets that grind investors into the ground, these multi-week shakeouts accomplish the same thing, with the exception that the major indexes hold up fairly well, while the average stock…especially momentum stocks…are hit much worse. The key is they’re short-lived and then they’re just…over. 

When you think it through it makes sense. In today’s age of technology and instant communications, everyo...