A lot of folks out there are probably thinking the worst is over in terms of the week's market rout.
My bet: They're completely wrong.
The stock market does as it will. Some blame algo's, others insist it's all just a big gamble. And then there's the habitual complainers alleging that the whole thing is rigged. They're just scared shitless.
I'm not in any of those camps. If I were, I couldn't take credit for my years of success and that's where I've got to draw the line. Strength can come from a lot of things but for sure---when we can see years upon years of strength gathering steam---only the world's biggest fool or liar-in-waiting would go up against a record of achievement.
Today, then, I'm in wait and watch mode. It's all about patterns. To accept something "appearing to be a pattern" we've got to engage with at least one or more absolutes. A calm trading day might be that for some although its not enough for me. Words coming down from On High---the Administration aka Larry Kudlow or Trump himself, a featured headlining piece from Barron's or the WSJ---any of these venerable institutions could trigger a buy-in. Not to say they want to hurt us, merely that investors tend to be lemmings, ready to follow the Devil heading back to his lair or liar. lol
These are phony baloney scams. They're designed to sway the investor's judgment. When we give up judgment, personal choices might just as well be thrown out the window.
For me it's always going to be a process involving my own judgment and while others may well agree in theory and principle, it's going to be my choice first and foremost and exclusively. This is why I'm always advising that the investor drink up as much as possible from us "experts" (I wish! lol) only to toss it all aside, swallow hard after chewing thoroughly, and then wait to see how it feels after everything settles in your gut. Only then does it make sense to proceed with your plan.
This is largely about personal accountability. Sure, there are some out there with great points to offer. But in the end each individual investor must feel confident in his/her own cud-producing process yielding a plan of action that he/she must live with and I can only hope I don't steer others wrong.
So then, three hours into the day's session, CLDR is showing strength. But I am not convinced it's resolve. Even dead cat bounces may show strength and a bit of resolve. But those feeble moves don't spread out well on a slice of bread and this game is about bread... bread stretched out over a period of time distinguishable by trends-in-the-making. This is pattern-building.
I'm not buying anything yet and probably won't as cash is tight.But you never know...
One thing I'm positive about as it's part of a pattern I've witnessed many times over the past 25 years: Today's springing back will ransack the believers before they can even burp. Better to wait till the dust settles before putting your cash at risk in a blinding sandstorm.
Good fortune to all!
