It would make sense that after terrific near-term gains, you might sell the news of a FED meeting news release. But in this market you must embrace the perfection of the ever-levitating prices.
Have you reached your long-standing targets of positions you bought this year? Last year? Five years ago? Just raise those stops accordingly. Do not sell for fear of missing upside.
And most importantly, YOU MUST NOT HEDGE AGAINST RISK. If you do, you will lose that capital in its entirety. Volume and overall market participation is truly secondary when there is no selling.
Think about this: Alan Greenspan created an ever liquid and expanding financial marketplace, bereft of any and all regulatory oversight. When he knew that it would crash and burn, he retired and passed the position to a “ringer”.
Bernanke is the guy who’s entire academic career was built on fixing the wrongs of the Great Depression. You all know about “Helicopter Ben”. It was all by design and aside from a few hiccups, it is working perfectly.
So embrace the horror of “The Perfect Market that Only Goes Up” (until April 15th).
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Scott,
Other than tax day, what’s the significance of April 15th?
Thanks.
“Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.” Ronald Reagan
Actually, I think that has reversed in recent years;)!
Man, you are REALLY going all-in on this whole April 15th thing.
Give or take a few days…
Tax day is when your 2011 401k/IRA contributions are due to be deposited in the brokerage account of your choice.
Nowadays, the only participation in the stock market by retail or “odd-lot” investors is into their tax-deferred retirement accounts.
You generally allocate those funds to various investments when you make the deposit. That money then gets put to work instantaneously.
Have you heard of “Sell in May and Go Away”?
That phenomenon is directly related to the peak inflow of funds by retail investors, who are usually sure to buy near the top of a cycle.
Benny smokes Hedges after sex … or lighting a fire under the market.
wish i kept those bac 9 calls,
I’m confused how the dollar went up the last few days while the market did as well
In other words, there’s also the possibility of the economy actually improving
April 15th is also significant in the Greek tragedy now playing in Europe.
Buy Buy Buy until the end of July…..been working the last few years