Thursday the stock market continued climbing the wall of worry. Skeptics who are on the short side of this market are getting trashed. Mean reversion traders that got short too soon are also getting hammered. And yet sentiment remains sour but their has been a recent shift where the doubters and skeptics are starting to think…Hey lets get on board the Stock Market Train:)
Very similar to the Republican’s embracing of Trump. Yes, No, Yes , No, Maybe, Never, and it goes on. I think that is about as good an analogy as you can get right now for the stock market doubters.
What to look for? When all the skeptics get on board and abandon the short side of the stock market. When the barber’s again start giving you a stock tip as you get a hair cut. When friend’s start mentioning their stock of the week. I think we are in the euphoria stage. Where in it is the big question.
Myself I just put on a short trade in the Dax yesterday. I did not do this because I am in the skeptic category but only because it follows a very high % system that not only back-tests well but has performed admiralty real time. It looks like my timing might have been fairly good as the stock market is off almost .5% while the Dax pre-market is off between 1 and 2 %. If we get this pullback I plan on making money on it…but shorting the Dax not the SPY.
Thats it for this morning. No malware to slow me down this morning. No one tricked me to download malware. Although I do keep getting a phone call asking “how is your computer running” and ” I am the guy that fixed your computer a few years ago”. Sweet:)
Good Luck Today
RickJ
RickJ’s Handicapping Picks
