I'm assuming longer term that the market goes lower. By assuming opposite of what I wish to happen, it helps to keep my head clear and eliminate most emotion. By assuming opposite what you wish or believe, it forces you to come up with a good plan of defense.
Having said that, I notice that all of the sectors that have led the market recently, are now breaking down, (HMO's, Homeboys, Gold, etc.) It would seem to me that two options are available.
1. A total breakdown in the market as no sector steps forward to establish leadership.
2. Money rotates into sectors that are beaten down the most.
It wouldn't be sporting for the markets not to provide a little hope on occasion. Any fisherman can tell you they prefer a little fight in the fish. The markets surely would prefer for us fish to fight a little, wouldn't they?
If we're going to get a bounce in the market, it would need to come by as early as next week. If it doesn't, stops need to be kept tight. Barring any terrorist activity over the next several days, the sectors that have been beaten down the most of late, may provide a playable bounce for those wishing to provide a little fight.
The market can't take your money if you're unwilling to play. Therefore, like a slot machine, the market has to let you win once in a while, to keep you coming back, if you're nimble enough to play and not be greedy.
dabum |
