Mainely Stocks

[ari5000]

As I get more experienced...

you realize charts don't help as much as you hope they would.


Today it was obvious we were oversold... but the IBD leader names were all red, all day. Finally near end of day -- a real attempt was made to rally. I saw it... but didn't trust it enough to go long.

The other key that made me think we should rally was the $VIX which was red all day. Red VIX is usually good for the markets.

The fact is -- the economy does not support a rally. Based on everything I know... I would expect lower prices.

AMZN, AAPL, NFLX, SNDK are all still very expensive. So is GOOG and many others. The ride down is extremely powerful.

The entire economy has been propped up on ultra-low rates, debt, stimulus... and hope. In reality, people are going to have to save more and spend less. And so is the government. The world won't keep funding our overspending. It's absurd to think so. Greece and Ireland overspent for years... and they got called on it.

We're no different than Greece. We have a bigger economy that's all. But if you spend more than you produce indefinitely... there comes a time when the market will say: no more. That time is now.

It was an interesting week. Even one of the best traders I follow, Gordon Eckler (geckler) mentioned how he was having a hard time trading. It is tricky in a bear market because moves are sharp and sudden and seem to come out of nowhere... and your regular day indicators rarely work.

I made $13 today trading.

I consider myself lucky.