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Stock Market Rally Parties On | MRKT Call

RiskReversal Pod

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Buying Underperforming Stocks and Caution about Chasing the Russell

In this chapter, they discuss the strategy of buying underperforming stocks when there is euphoria in the market. They analyze the IWM chart and point out that the current level is a critical resistance level. They express caution about chasing the Russell after its 25% move and suggest that if the economy weakens, the Russell will lead to the downside.

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