Tuesday, July 5, 2011
Get Ready for Low Volatility
It will be boring trading for the next few weeks as the market grinds higher along the cliff of worry. I am not going to short much, if at all, and will be looking to buy dips. It is a strategy that has worked for over 2 years and will continue to work until the stock indices get too high and the public embraces the stock market.
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
You know the seasonality is not really constructive for a slow grind up. I'm thinking something frenzied, in whichever direction.
There are so many people who are pessimistic, mutual fund outflows have been so ridiculous...I don't really see a slow grind up yet. Not eonugh trendfollower monks getting interested yet, still looks like a market where faders are active and getting whiped out hard.
Every green candle you can almost hear the *pop* *pop* *pop* going of all those idiots who leveraged their bets on some kind of market crash over Greece. Best thing yet: They're all in denial. Nooo, Greece isn't over. Noooo, maybe Greece isn't going to default but the US certainly will... And so forth.
You rarely see a market go right back to a high volatile environment after a 5 day up thrust from a U bottom. Generally, it takes a few weeks for the market to lose the upward drift and momentum after such a strong move off a bottom. Sentiment supports this belief that we grind higher as there is still a wall of worry the market likes to climb.
Post a Comment