Bulls Push Through Bears' Lines of Defense [View article]
Agree entirely. The higher this rally has run without a meaningful correction, the more implausible it has become. The game is really quite straightforward now: continue holding small long positions with tight stops, and get ready to short big-time once we move from the implausible to the truly absurd.
On Jul 21 09:13 AM Nick36 wrote:
> Perhaps a lot of so called 'Bears' are simply staying out of the > market and waiting for better stock valuations. That's why trading > volumes have been far below average in Dow and S&P 500 for the > last couple months. > > And the thing about Bulls bidding up stock prices based on technical > analysis regardless of the fundamentals. Is that they've done this > before and ended up being very sorry about it. In October 2007, > the Dow and S&P 500 were both reaching record highs. Which was > after the sub-prime mortgage mess was already discovered and was > working its way through the financial system. > > It's not enough to look at what other investors are doing. You > also need to look at whether their actions are reasonable or not. > Or else you end up running of the cliff with the crowd, like a bunch > of lemmings.
Bulls Push Through Bears' Lines of Defense [View article]
On Jul 21 09:13 AM Nick36 wrote:
> Perhaps a lot of so called 'Bears' are simply staying out of the
> market and waiting for better stock valuations. That's why trading
> volumes have been far below average in Dow and S&P 500 for the
> last couple months.
>
> And the thing about Bulls bidding up stock prices based on technical
> analysis regardless of the fundamentals. Is that they've done this
> before and ended up being very sorry about it. In October 2007,
> the Dow and S&P 500 were both reaching record highs. Which was
> after the sub-prime mortgage mess was already discovered and was
> working its way through the financial system.
>
> It's not enough to look at what other investors are doing. You
> also need to look at whether their actions are reasonable or not.
> Or else you end up running of the cliff with the crowd, like a bunch
> of lemmings.