Tuesday, August 4, 2009

Driving Miss Crazy ?

So we dont know the WHAT. We dont know WHAT is driving this market. True to form, the markets moved in unexpected ways upon the Bradley Turn date of Jul 14-15, and the rally commenced to get energy underneath it. We dont even care what is driving this market. We know it WILL have corrections, perhaps even soon, BUT I have not seen these to be of any real consequence, YET....

The real importance of what took place is the the markets went UP, in the face of everyone guessing where we were / are in the New Depression, leaving everyone scratching their heads and looking for WHY's.

So WHAT IS NEXT ?? Truly, the USA has lots of debt to float, lots of it. Does that mean it wont or it cant be done?? Unlikely. Will it be done without consequuences ? Do we know what those consequences will be ? Unlikely.

Lets work with what we know : We are in the midst of a wrenching financial crises and re-adjustment. As badly as the banking and credit sectors tried to shut down, they were forced open like a quahog is opened with a clam-knife. Bullies, statists, autocrats, call em what you like, they forced the system to work, however poorly it worked. This set of markets is going to fluctuate. As subscribers to PEAK PERFORMANCE PICKS know, there are new selections every week that appreciate.

This is NOT your parent's market. Intermediate trends might last a week, or not. Hitting a daily selection for 10-20% is the market of recent markets and their volatility. My view here is critical analysis, severe culling, and selections with technical merit will profit us all well, as long as we maintain our discipline of Price Limits and Stop Limit orders. I know that is not very philosophical, but it is how we will make money.

We may, in retrospect, know what drove these events, but our first task is to survive, second to prosper, and eventually to understand.

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