The Market Continues to be Nervous

Last week the economic data was generally lousy and the market went up. This week the economic data has been generally positive – and the market has gone down. The nervousness in this market continues and the rather small sell off this week is probably not the final answer the market is seeking.

Will it go up or down from here. I have no idea. When the market is acting as irrational as it is these days, I just thank the trading gods that my method is based on short term trading, so the eventual movement in the market matters little in my day to day trading.

I confess to being a closet bear at the moment, if only because I believe that the market eventually is controlled by fundamentals in the long run. And the fundamentals of our economy right now are scary as hell. The FED thinks the solution to too much money in circulation is to print more. The government thinks that the solution to too much debt is to borrow more. The inmates are running the sanatorium and things are going to be very tough on all of us at some time in the future. When? Damn, I wish I knew. No one knows for sure, but it is going to happen – probably sooner than later. Many who are smarter than I don’t think we will make it past the end of 2014. Let us pray that we have a bit more time. I for one am not as ready as I would like to be – at least not yet.

So short term trade as best as you can and try to be mostly cash overnights – because when it happens it is going to be fast, furious and nasty as all hell.

Good luck in your trading.


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