— Grayson Roze (@GraysonRoze) March 15, 2023
Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze). The saying “The trend is your friend“ gets thrown around so often that it’s easy to dismiss it as a cute rhyming platitude. However, we’ve seen numerous examples in recent weeks that underscore the importance of avoiding downtrends. Today’s example is Credit Suisse ($CS). The stock was down as much as 30% this morning, and while it pared those losses intraday, it still closed at an all-time low. It’s tempting to want to get involved in downtrends, as we’re all taught to buy low and sell high. However, surprises tend to happen in the direction of the trend, and Credit Suisse has been in a persistent downtrend since the Great Financial Crisis. You can spend hours pouring over balance sheets, reading articles, and all that, but the trend has been telling you to avoid this mess for more than a decade now.