For Investors only; your mission is to Stalk the Bear;
Market Direction is being set in today’s broader market by the more than five thousand hedge funds, these funds at this time are working the market lower for two distinct purposes.
1. To conduct distribution plans for parent operations holdings.
2. To get control of Supply of the companies identified as most likely leaders for the next business cycle.
These two work to opposite purpose, yet utilize the same tools to attract particular targets for success.
Distribution is conducted on high liquidity vehicles to market followers who through private perception and a steady drone of media support ,that yesterdays leaders are the same as tomorrows, making entry into them at any particular time easily rationalized. right or wrong.
The Mutual fund industry, the ones who are not Hedge funds, remain fully invested, while J6P has accumulated extraordinary amounts of cash, and sits out the grind down that characterizes the current trend.
Hedge Funds are specific vehicles for accomadation of the trades real interests, to get control of the Supply and Value that will further enrich themselves in the next business cycle. In other words the current market direction is led by vehicles of opportunity. Don’t kid yourself ,they are nothing but the latest in a long line of instruments, to churn wealth and tip the balance of power to their own ends. Many of these companies are fully funded by the names we all know and trust, set up for the purpose of the churn, but separated by the same phony walls recent scandals have educated us to. This allows players to conduct their sabotage in broad day light without painting their control units or their brands with the same brush.
These actions were set in motion well before the market bubble, it’s just a part of the life cycle of the overall business cycle by those oligarchic interests behind much of the market. Watch for an increase of M&A activity as smart companies align themselves for the next business cycle. Learn to accept present market conditions for what they are, wishful thinking wont change the fundamentals of the current trend.
With the proper understanding of the current trend, you can stalk the bear and win.
As an investor the biggest challenge you face is separating yourself and your money, from the current trend. The Churn demands that you adopt a degree of paranoia, without that paranoia, you will be fleeced on the way down or the way up.
There are a wide range of defensive strategies that individual investors should take during these times of disruption; one of the best is to put the broader market on IGNORE, turn off the TV and get back to fundamental investing. Knowing why your buying something on the basis of forward fundamentals is far better that speculating on whether or not XYZ will be able to hold market share in the face of a changing technological landscape. In other words meet the controllers at the window, and take your fair share of tomorrows stars and put them in a drawer, with full confidence that in becoming offensive in your accumulation, your meeting the opportunity the bear churn presents head on.
Another key strategy is to disconnect yourself from the highly liquid securities of the past business cycle, find and focus on those companies that are graduating from small to mid or from mid to large cap status.
They are identifiable by a wide range of data supplied by the market everyday. The challenge is to look closely and make comparisons. But under no circumstances should you buy the past, based on the availability of a lower price in the current market.
Begin with an understanding of yourself as a trader or as an investor, these are distinctly different propositions and they require their own sets of rules. Follow the rules like a second religion, as the opposite side of you, is out to take your slice no matter how big it is. It must be your primary objective not to succumb to the wiles of the trend, but to stalk the trend turning it into your own advantage. |
