Keith Richards

His view on the world of stocks is very simple. They're going either up, down, or sideways. The sideways periods can be either topping or bottoming. Basing is the bottom part of the stock market cycle phase. We're in that phase now. The markets tread water, going up and down, not going anywhere for a while. 

His issue with the markets right now is that it's a concentrated market. For example, it's insane that NVDA is up about 25% today. Six stocks make up 50% of the NASDAQ. Market breadth is terrible. The advance/decline line is declining, which means there are fewer advancers than decliners overall. 

By itself, the NASDAQ looks good driven by those 6 stocks. But the broader picture shows that it can't last like that. We've seen this before, and it's called 2001 and late 2021. It's not a healthy market when most stocks are going down and a few are going up.

He's cautious.

You don't care if you're in that index or you're in those stocks. But let's take the example of TSLA. For a while, it could do no wrong. The PE ratio of 100x didn't bother people, because they said it's going up. But it rounded over and got ugly. These stocks get overvalued, and the crowd moves on.

You can trade the trend, but it's getting peaky. You don't want to be the last person to exit the subway.

Not a bad chart. Bit of resistance coming up. Maybe $3-4 upside. If it tests and breaks above $24, that would be good. Hasn't bought because upside is to $24 and not sure it will break out. If you own it, it's great. Could also be a short-term trade.

Bit of noise from 2021 that it did bump into. Will probably consolidate for a bit. He's always looking for breakouts, so would be good if it broke above high $30s. Rates an OK 6/10, but not a jump-on-it stock.

He sold gold recently. Gold has a lid on it somewhere around $2000. Not a bad chart. You're hoping it will break out and, based on history, it may not. You could make up reasons for it to, but until it breaks out and lasts for more than just a few days, he doesn't trust any of those reasons and just goes by the chart. 5/10 for him.

Great proxy for gas. Totally basing. Likes the chart formation because you can buy at the bottom and sell at the top. Has a history of hitting the top and then falling. A trade for now. If it breaks through, lots of upside, but that's an if. See his Top Picks.

Driven a lot by OPEC and politics. Likes it, but he's trading it. He's here for a good time, not a long time. Momentarily oversold. Might still be in a downtrend, but still has potential to bounce. He's regression trading right now. Trade it for a pop.

Possibly a bit more downside before it finds a home. You'll have to watch if it forms the zig-zag thing that he calls a base. Then you can consider doing short-term trading, or wait for a breakout from that base. He wouldn't buy it today.

A lot of oil stocks are just coming into that base. He'd like to see it bounce, or you can take an initial leg in. Don't commit all at once, try 2% at a time out of a 6% position. See if it bases, buy a bit on a bounce, and then wait.

Yes. If it's breaking support, you have to stop out. You have to have a discipline, whatever that is. But just holding because you bought it doesn't make sense to him. He's OK with holding stocks that are zig-zagging in a base. 

But when something breaks down, you shouldn't hold it. Give it 3 days to 3 weeks, but don't hold it forever. If it stays below your neckline, you have to sell. Once things waterfall, it gets ugly fast. 

No one wants to take a loss, so they hold on. Hold and hope is a bad strategy. Walk away, no matter how much it hurts.

The market's precarious, so he's just looking for stocks that pay a dividend. It's a sideways chart. His stop point is a line in the sand, so if it starts to break down, he'll be out. Buy near the bottom of the channel and you'll be OK. Yield is 6.3%.

Inflation is coming down and will some more. But the fantasy of 2% inflation is unlikely, as long-term inflation is over 3%. Over a larger cycle, base metals are good for a long-term inflation hedge. As well, if you believe the NASDAQ is heading for its day of reckoning, this has no correlation to that index.

Recently broke out, so it looks good. Thinks it can get back to the old level around $230. Plenty of upside from where it is now around $200. Chart's done a cup formation and a handle, and now it's breaking out. He plans to hold a little while longer.

A 4% short position doesn't sound like a big factor to him. Most stocks have some sort of a short position.