I know you are just waiting for it to be over. As if we are just going to turn around on a dime and it will be just like the good old days, 2006-2007. It's true that we will get some huge moves to the upside and you will want to already be in the market when they happen so you can take advantage of it. But don't think that it is smooth sailing from there.
The American consumer is completely in charge now. Every day that a DOW company reports weaker earnings will send the markets down. And not only do we have to get the run on the hedge and mutual funds out of our system, we will follow that up with investors selling through the end of December to take advantage of tax write offs. Especially if they fear a new President raising their capitol gains taxes. It will be January before we can really hope to see a solid move to the up side.
Am I still shorting the market? I am being very careful from here on out, but I did go short the S & P 500 with ticker SDS mid day today only to sell it off in the last 15 minutes of the trading day. Holding these positions overnight are just hard to endure. I'll gladly take that profit in any market.
While most retail investors look for a rally on a .50 Fed rate cut from the FOMC meeting that starts on Tuesday, I think the market has it cooked in and that was partially responsible for the pop we got today. I have to believe that it is still time to sell all of these Bear Market rally's.
You have to start adding to your long term positions sooner or later, just do it a little at a time. Happy Trading tomorrow!
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