Today is a pretty good example of why it is so important to 1) Identify if we are in a trending market, and 2) Respect the prevailing trend by riding it or being in cash. Over the past few weeks, the rational, refined argument seemed to be that this rally is all one big mirage and that it would soon collapse. Instead of immediately collapsing, the market consolidated for over two weeks, and is breaking higher as we speak. With 52 week highs just above, at 1219 on the S&P 500, the reality is starting to set in that “this time is different” is merely a red herring to get you to position yourself on the wrong side of the trade.
i put some buckets out back to catch some of helicopter ben’s money. i mean who needs fundamentals when we can just print ourselves to prosperity. i got stopped out of my short position and went long at the same point.. staying on my toes though because the bottom can drop out at any time…