Larry Pesavento (www.tradingtutor.com) is not only a mentor but a true friend and guiding example of integrity, passion and truth in the financial markets. He’s 75 (acts like he’s 16) and has made his living trading the markets for 50+ years. It’s an extreme honor to call him a friend.
SPOILER ALERT: over the years he called my family and left a message on the answering machine playing Santa for my kids … he’s that kind of a guy.
He’s worked w/ me around the MENTAL aspects of trading and working thru losses and a drawdown that I had in my CTA which had not occurred after 7 years of positive trading year over year.
Bottom line – when he speaks I listen. We skyped tonight after the football game about the Chinese Yuan, Silver and being above ground and I asked him permission to post a video that he put out this weekend which I think was extremely important. Of course he agreed because I truly believe he cares for all of us.
Here’s the deal – I full admit I went bearish in 2012. Why? Well, it’s in this video – my thinking was not based on patterns but on an emotion of “how could they surpass the debt from 2007 after that chaos?” I “think” it made sense BUT as anyone can see – the market has relentlessly marched upward and onward.
If you read this blog, you know I really don’t know anything about fundamentals. I am proud to say I am a pure play chartist and, quite frankly, pretty darn good at it. (Just ask Larry … :)) So, this video that Larry put out speaks to me … I don’t know “when” we get thumped but I am pretty confident that it’s going to happen sometime in our lifetime and it’s going to be RELENTLESS and BRUTAL and knock the teeth out of the financial landscape as we know it.
So … use a stop.
ENJOY and to Larry – my mentor and friend – thanks.