Mainely Stocks

[ari5000]

reality vs opinions:


People have all kinds of opinions. Here are some facts:

http://www.barchart.com/stocks/marketpulse

Declining issues SWAMPED advancing stocks today (see link)

Volume was strong.

The major indexes pretty much closed at the low of the day on heavy volume.

The market gapped down and finished lower despite already being down 5 days in a row. This has happened 10 times before, except the last 10 times, the index filled the gap opening.

Just like a market in a raging bull market is hard to turn, a bear market does not turn on a dime either, and it always goes to extremes.

My long positions are being destroyed (fortunately I only own 2 now). My managed account was down a solid 1.4%. Obviously better than the indexes.


The best thing about being a small investor is that you can cash out. Big funds get destroyed trying to unload multi-million dollar positions during a downfall. To profit in the long run, we must utilize our most important tool -- the liquidity of the market. We can exit. Big funds can't - not so easily.

90% of all stocks recently are going down. The odds are against us.

On Twitter - I see a lot of anger mostly. Confusion. I know what's next... frustration. Depression. The acceptance of major losses. (Then the markets start to go up again.)

We need to sidestep most of that part of the cycle. Participate in the excitement, greed, euphoria. This part of the game is nothing but pain.

Follow the signals and it'll be clear when the market is less hostile. For now, if you're not at least 50% cash... I can only wish you the best of luck as this bear market unfolds.