A diary of the thought process behind my investment decisions
Perfect Vision
Using 20/20 hindsight the call buying last week and this morning, combined with the inability of the bulls to make any headway was the proverbial "canary in the coalmine" that the market needed a rest.
all week. nobody expects a big correction so it will happen now. people buying dividend issues today like idiots, and past week doing lot of rotation. this is sign of desperate hedge funds trying to find returns, will bite them all in ass.
The market has the potential to go down until its oversold but that does not mean that it will. If we did get oversold I would probably put myself in a decent net long posture as I don't expect giant moves in either direction.
7 comments:
How long of a rest? One day?
all week. nobody expects a big correction so it will happen now. people buying dividend issues today like idiots, and past week doing lot of rotation. this is sign of desperate hedge funds trying to find returns, will bite them all in ass.
The market has the potential to go down until its oversold but that does not mean that it will. If we did get oversold I would probably put myself in a decent net long posture as I don't expect giant moves in either direction.
I would point out that even if we do get oversold its unlikely that everyday will be down.
do you think the metals bubble is ready to burst? or do we have a way to go?
I don't trade the metals. There was so much talk about them everywhere last week. In my experience that usually marks a short term top.
This certainly is not as dramatic as the top we saw in oil in 2008(which was a long term top) but not every top is the same.
this is a type of market which is ripe for black swan type events.
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