Deep Market Thoughts…Volatility and Rotation Is at Extremes so Stand FURTHER AWAY!

Posted by Howard
on August 5th, 2008

It is quite possible we are fishing around for a dare I say ‘BOTTOM’?

Volatility is extreme, trend followers are being annihalted in some very long-term profitable trends and there is sheer misery. If you are trading and making consistent money, don’t get cocky…but you rock. You are probably a liar as well.

The name of the game is still survival and doing less and the more we get volatile, the prouder I am to be harping on this. After the 10-20 recent 300 point swings in the market, we are where we were a month ago.

We could drop or rise 2,000 points around this exact price and I would not be surprised. That’s why I won’t stick a flag in the sand and continue to peck away and stay in the business I love until a sweet trend in the markets reemerge. And they will.

I am glad I have been nibbling on a few stocks a week. Today, my few shorts (Capital One and Best Buy) took it on the chin, but I had big gains the last few weeks in SMN (agriculture short) and China. My longs that are left have done amazingly well all things considered.

Stand back and let people blow their brains out trying to figure it out.

Cisco says business is good, but Priceline (PCLN) is down 20 percent. My money is always on the consumer and travel makes the shrinking world go around. I think Priceline is more important to watch than Cisco. I am short some consumer stocks as per above and that’s where I would keep making my negative bets if inclined. We are hurting and worried about our jobs and scraed that we can’t keep up with the Jones’. Even an iPhone is not a must have although I am leaning…

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