Wednesday, July 18, 2012


As an investor you are left with very little choice in your search for yield, if you must have returns you almost have no other option than the stock market. And the answer for you is it is a "long term" investment, where almost nothing else is.

Bonds now, IT and longer duration come with risk as well to a rate spike and loss of value. IT IS seen as safe haven even at 1.5% or below for 10 years! Money markets return your money, little else.

I have heard it suggested by some experts to buy JUNK BONDS because they yield more, but have greater chance of defaulting, Richard Russel has said various time many mistakes made chasing yields.

The BOND trade FEELS VERY CROWDED, so if money flees bonds it should go into stocks? or where else would it go?

VOLUME is anemic. 1370's on the SPX have offered good resistance, we are there again. 1330 below good support.

If you are a TRADER, you love the market perhaps because you can read its movements between the zones. An investor can be baffled, or can do nothing more than sit matter what.

It just seems to me, they try to INFLATE the debt and crisis away, but are they successful?

DEFLATION is insidious and ask Japan how easy it is to get escape velocity from it.

I will talk and express opinions related to fundamental issues, but the market will move related to TECHNICAL issues when they give and break or hold.

I no longer buy stocks on an idea or product, only on what the charts tell me is my best bet. If you don't understand technical analysis, you are naked and unpretected.

The biggest mistake one can make is overstaying your welcome when SHORT or LONG.

I am seen by many as a died in wool BEAR, I like to think that I can transcend that moniker and see the market for what it is....ONE POSITION , and leave that sperate from the ISSUES of the world.



Nifty Tips said...

Greed is Curse, Although experts calls always helps to make money, but its market, so sometimes loss occurs. So its better dont lose your heart. At the end, its sure that everyone gets profit.

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Marc R said...

And we always end at extremes of greed and fear....fear is somewhat easier to detect