The Markets
- Averages were all over the place as jockeying between bulls and bears begins in earnest. Up 170 Dow points early, down 110 or so, closed up 90. A pretty constructive day.
- Resolution of this tug-of-war is more likely to be resolved in bears favor. There are just too many profitable trades out there that need protection. And need to be sold. And, since the day-trading mentality is strong and pervasive one could expect rapid sales to protect the gains.
- One day at time, as always. Buy and hold has not yet been resurrected as a sound investment strategy, and may never be. Swing trading of a few days or weeks is the most to be hoped for. Keep a sharp eye on your gains. Never let a 10% gain slip away. Put a stop under it and if you get a “runner” let it ride. But move the stops up.
- The hope for the bulls is a still nagging feeling that we are tilting towards a worse recession. So long as negative feelings remain pervasive the bulls have a shot at surprising everyone. But they must step up here with the trillions of side lined money. The shorts are about shot. They are no longer covering but are putting on new shorts.
Poker night tonight and I feel lucky. But I’m not sitting next to Brian. We chat too much and must constantly ask the dealer; “What are we playing, what are we playing?” After an hour of this the dirty looks start. So, got to pay attention. And win. Big.
Hope you have a terrific, terrific evening!
