Today's late day plunge sent the market smack dab in the middle the trading range that's been in place for the past couple of weeks. The put/call ratio closed bearishly today and with rydex indicators smack dab in neutral territory and the market neither overbought or oversold bears have some room here to do damage tomorrow. Of course, it's all going to depend on the big kahuna tomorrow a.k.a the non-farm payrolls.
Bears are already getting excited on yet again just the smallest of pullbacks. I've give props where it's due though...today was a bearish looking day because we started off strong and ended very weak with a low put/call ratio. Tuesday's gap has been partially filled now.
Today was yet another meat grinder day. I saw one guy post a message admitting that he got stopped out of his SDS position this morning, which he had been holding for 2 months, 1 cent above the low of the day. Ouch!
I believe that any downside we see will end up being yet another bear trap. Here's an interesting thing I read just now from a marketwatch article regarding equity mutual funds
"from the beginning of March through the end of November, net withdrawals amounted to $25 billion"
So, despite the fact that we had the best rally in 75 years, people are running for the hills. Can you get a more LT contrarian bullish signal than that?
What a nation of permabears we live in!
Here's a comment made by the leader of a popular bear blog today
"There is no place for optimism the next few years"
No place for optimism? What a miserable SOB this guy must be. This guy must wake up every day hoping for the end of the world. That's a shitty attitude to have...especially when we are seeing signs of things getting better. And it's not like this guy can claim he's just being a realist. We have been seeing clear signs of a recovery for months and this guy is rooting for it to fail just so he doesn't feel so bad missing out on the rally while getting burned by his serial shorting.
This guy also calls himself a technical analyst and he even wrote a book on it. But this guy is no technical analyst...he's a permabear who tends to see things in a bearish light and will use t/a selectively by seeking out bearish patterns most of the time. This is no way to trade or live for that matter. Don't be a miserable SOB just because you got burned by the market and want revenge and don't be dedicated to just one side of the market especially the bear side which in the very LT has been a loser.
I've said this before....I don't believe not one single permabear you see today first started played the stock market to bet against stocks, hoping for a depression. Chances are these bears got burned on the long side at some time in their life and turned to the "dark side" to get revenge and can't go back to being bullish because they felt "betrayed" or "cheated" by the system in some way.
Once you learn to let go of your emotional hang-ups, pride, ego and personal grudges you have against the market, the fed, GS or whoever, you will finally see and accept the market for what it truly is and do what you are supposed to do...make money. The best traders in the world couldn’t give a rat’s ass which way the wind blows. They don’t trade based upon what’s intellectually and personally satisfying because that’s ego talking and ego has no room in this game. I find that these permabears have the biggest egos out there even though they probably won’t admit to it.
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