Investing With IBD Ep. 348 Why This Trader Is Sitting Out This Market
15 snips
Nov 25, 2025 Jason Shapiro, founder of the Crowded Market Report and a featured trader in Market Wizards, discusses his contrarian trading strategies. He emphasizes the importance of market liquidity and why he prefers inaction when critical data is missing. Jason reveals how he uses Commitments of Traders positioning to spot market turns and warns against the dangers of the 'buy the dip' mentality. He also shares insights on unusual market behaviors and his thoughts on AI's uncertain future in trading.
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Conflicting News Prevents Crowding
- Ongoing, contradictory political headlines reduce the chance of deeply crowded market positions.
- Jason says the taco-like back-and-forth makes crowded extremes rarer and thus fewer setups.
Let The Market Decide On AI
- Nobody truly knows AI's long-term path, so he lets market pricing, not tech predictions, guide him.
- Jason watches market reactions to AI rather than forecasting its eventual societal impact.
Verify Dip Buyers With Positioning
- Don't assume consensus sentiment; wait to see if crowds actually buy the dip before declaring a top.
- Jason will use COT data to verify whether a dip-buying crowd has formed before worrying about a market top.
