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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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To: Walkingshadow who wrote (4808)8/5/2010 10:31:07 PM
From: Provider  Read Replies (1) of 4814
 
"Markets are irrational".

That is a concept that you must get your mind around in order to not get your head handed to you as you trade. Everyone knows the structural defects in the market, yet it is holding up beyond what the fundamentals indicate. Much like everyone knew that the financial companies were in horrible shape back in early 2008, yet things kept going forward. That is until it finally mattered, then it melted down.
I'm thinking the same thing happens here. One day it will matter and the selling will become a deluge.
But until then with all the money looking for a place to get some kind of return, the markets continue to hold up.

The markets are irrational! I say that over and over, trying to overcome the natural instinct that it follows some kind of rationale, when time and time again it proves it has a mind of it's own, defying logic.

Provider
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