Wednesday, December 3, 2008

Everythings's a Trade

The market is in that place and time where it doesn't make sense. The bulls will argue that it's going up on bad news, implying that we have discounted the horror that is in front of us. The bears will argue that the rallies have been of the light volume variety and opine that "nothing goes strait down anyway." Our job as traders is to block out the noise, the rhetoric, and avoid the temptation of conventional wisdom and thinking.

We aren't trading on fundamentals anymore, even technicals are iffy, although the technicals were my guiding light today. I honestly believe if you don't use charts you are simply guessing. Believe me, years ago I guessed and it wasn't pretty. Of course if you have a buy and hold philosophy you don't need charts or fundies because everything works out great in the end, right?

So far this week the market has done a great job of brushing off really ominous data, a bullish sign. I do believe we could see some bets come off the table as we head into the unemployment figures on Friday. It's been a decent way to play it recently, get short before the number. It's the only number I care about anyway.

And I do think the financials are setting up to be phenomenal shorting opportunities again. Sold to you. Will try for some charts in a bit. I hope everyone was successful today.


About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.