This trade of the week will be a little bit different than previous ones. The market is in a very uncertain position. Bulls are trapped under heavy pressure and the bears have significant profits to protect, so we could see a short-squeeze at any time. The trade of the week is to hold high levels of cash until the markets settle down and better opportunities present itself.
When in a broken market, I've found the best style is to just let things play out and go to cash. We have officially been downgraded by the S&P500, so I expect a larger sell-off this week. Markets always run up too high and always fall down too low. This makes calling tops and bottoms impossible with any accuracy. Notice how anyone who has ever called a top or bottom correctly is rarely ever right again? They always talk about a top or bottom they called many years ago because they are a one-hit wonder, just lucky that one time which they always remind everyone of. Nobody keeps track of these statistics either and we should for educational purposes as many individuals are blinded by these pundits.......CLICK HERE TO READ THE REST OF THIS ARTICLE FOR FREE ON THE AUTHORS WEBSITE