I have a few important comments, none more important than the rule to secure gains in Swing Trades when you have them. We may have the opportunity to secure 2% from our QID swing trade early on Thursday. DO NOT HESITATE to secure gains. This is part of the strategy.
For day and lock alerts viewers, add 2724 as the next level of support. Data points should now be:
My recent positive bias has some people confused, so let me be as explicit as I can be. I foresee severe economic stress and continued market declines over time, but that need not happen immediately. I am a long term bear, I do not believe anyone should be buying and holding, I bite my lip whenever I hear one of my friends tell me he is thinking of buying some property or starting a business that is subject to economic weakness, and I believe proactive strategies are the best way to manage wealth going forward, for at least the next handful of years.
With that said, if the market has been moving higher, we need to be proactive and move higher with it too. Until such time as my charts tell me not to be positive, I will have a positive bias. Eventually they will tell me to be negative again; eventually we will turn heavily short, and I expect the entire facade caused by QE2 to reverse. Soon QE2 will come to an end, and yesterday’s comments told us that there is very little chance of QE3 if Congress has anything to say about it.
My position on the markets have not changed, I will stay proactive; I will not be one-sided. This is the way of the world as I know it. That is also what the Investment Rate tells us. It says, in no uncertain terms, BE PROACTIVE so that is what I am. That means being positive sometimes. Lately it has meant being positive most of the time too. Again, eventually that will change.