I can’t say I disagree with Christian’s analysis that we could be in store for some major selling. The problem is the volatility has been crazy and my trend system hasn’t rolled over yet. It came real close yesterday, and with today’s gap down I thought for sure we could stick a fork in the markets, but they sure are resilient.

I sold out of my GLD today after buying it yesterday and am completely in cash and stress-free for next week. We’re likely
in for more of the same boring action as August is my least favorite month to trade. Now is the time to work on some systems, scans, or read a good book.

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13 Responses to “Market Could Go Either Way”

  1. Abdul Rahim Says:

    He will definitely get right one day after repeatly calling the market to go down. Market will do a correction (retracement) after rallying for some time now (indicators some at overbought situation). But I don't expect a crash or double bottom anytime soon. The corporate earnings are strong and still paying good dividends, housing price already showing some strength in some city like New York New York, investment and spending up and VIX despite market roller coaster this week, still at around 4 weeks low. Gold failed to sustain in a bounce (or make new high). The press always print the bad news first (where it is obvious) and hide the good one bottom of the paragraph or in small column. Market always start moving 6 to 1 year in advance. For me, any good retracement, is a buying for long. Many want to see the market crash and are still hoping, in despair. I have read their posting in forums and analyst reports in newspapers and online. They are not happy Jeff. Where else can you park your money other than getting good return from companies that pay good dividends while waiting to cash out when share price increase in value?

  2. mike Says:

    The economic indicators are awful but I don't think we will see any movement down until Q3 earnings. This guy missed the biggest rally in July ever. Why listen to him now.

  3. Abdul Rahim Says:

    Given the situation U.S economy (political too) is right now, I agreed with Jeff that there is alot of stress attached, to trade the market nowadays. It's not for everybody and if I do trade, I got my trailing stops in placed (how much I am willing to loose). The market have changed now, getting smarter and trickier because to many have learned the trade. Must expect the unexpected. Today, even Bernanke is talking like Greenspan's way (no clue, figure yourself).

  4. pal Says:

    Market has to be attractive to both Bulls and Bears.
    otherwise there is no Exchange! or Trade! 🙂

  5. Frank Says:

    I agree with Jeff. A lot of smart people get things wrong sometimes. e.g David Rosenberg has missed the entire rally from March 2009, but he was right on the market crash of 2008. You're not going to get every thing right. Currently I'm in cash 'cause this market is uncertain which way to go. We could really see nothing happen for the next while…lot of sideway action.

  6. Abdul Rahim Says:

    Now Jeff, that is good debate (logical). "The masses will never outsmart the markets". I am into more reading (information) now. To me it's never boring listening and reading to all, writers, analysts, contrarian or not, bear or bull including Cristian, so that I can position myself with reasons. I have also noticed since I start trading many years ago, that when market move with greed, all the indicators, TA, Charts & softwares (rsi,macd,bollinger,stochastic etc.) not in tuned anymore (totally neglected). And same goes when market is in fear.

  7. Abdul Rahim Says:

    Because of liquidity and market leadership, I am now more on U.S stocks. I don't like China market because there are many cases of companies manipulating their accounts and also directors (who happen to be also the majority stake holder) who then pledge their holdings to financial institutions for cash in advance and then use the proceed to speculate in casinos and properties. By doing so, they put minority shareholders at risk of loan default, and then finally the companies concern were fold over by the lenders leaving minority shareholders at losing end.

  8. mike Says:

    Too all, Jeff you are right a little too strong. My apologizes to Christian. I have followed a great number of blogs on the market. This website has a great mix of opinion and content. Great discussion!

    I have found it hard to ignore the bad economic news in regard to buy, sell and short discussions.

    What stocks are you looking at on the TSE?

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