What a time to be a trader! We are faced with a shadow recession while staring at a facade called the stock markets. Ignore the fact that Japan and Canada are in a recession, the market seems to be projecting that all is well. It's no surprise the equity market's rise is fuelled by debt via central bank stimulus. Who pays for that debt? Take a good look in the mirror.
Reality - we are having a huge commodity meltdown. Expectation - we should be crashing. Reality - we are not. Why? Because we must keep the facade going. They (the evildoers, central bankers) don't want everyone to panic that the very foundation of the financial markets is crumbling. I sound like Peter Schiff or Marc Faber. But I am just laying out the reality of what's happening. Now how do you trade this mess? You just follow what the market is doing. Because if you somehow short because of fundamentals or logic - you will find yourself broke very quickly. It's been like this since 2011 and you just have to keep doing it. This is why you see a lot of funds blowing up because their investment methods no longer apply to this deeply bifurcated market. Those of you who follow me know how much of a permabear I am. But, look at me lately - I have been calling out more upside than downside. Why? Because fundurrrrrrmentals. BTW, if you haven't already clued in, the NYSE is going to remove stop limits and GTC orders effective Feb 2016. If there was a time to diversify into futures, forex, bonds or bitcoin - it is now amigos. Safe trading! -G
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Multiple AuthorsTraders from Equity Sense will be writing on this blog on positions and other market-related things. Archives
May 2018
|