Mike
05-28-2016, 01:08 AM
Watch lists are updated. I will be on travel all of next week, so I will not be trading.
I took small profits in AYI because I held it for eight weeks and it only gained 3%. I also took a small loss in GLD. We have been going sideways for two years. Bear markets usually scare people out of the market. It may be possible to bore people out of the market with the same result of money on the sidelines. Take a look at what has happened to Investors Business Daily. They have dramatically cut back staff and reduced the paper from a daily to a weekly. If you attend an investment meeting, what do you detect in the attendance trend? Down for sure. These are the symptoms of a bear market with a huge exception of no major index price drop. Strange times indeed. Trendless markets will resolve with a new trend. I don't know the direction, and since we have been trendless for two years, I don't know how long the situation can continue. Money on the sidelines says the market could go up. Decreasing earnings, a weak economy, and market overvaluation says the market should go down.
I took small profits in AYI because I held it for eight weeks and it only gained 3%. I also took a small loss in GLD. We have been going sideways for two years. Bear markets usually scare people out of the market. It may be possible to bore people out of the market with the same result of money on the sidelines. Take a look at what has happened to Investors Business Daily. They have dramatically cut back staff and reduced the paper from a daily to a weekly. If you attend an investment meeting, what do you detect in the attendance trend? Down for sure. These are the symptoms of a bear market with a huge exception of no major index price drop. Strange times indeed. Trendless markets will resolve with a new trend. I don't know the direction, and since we have been trendless for two years, I don't know how long the situation can continue. Money on the sidelines says the market could go up. Decreasing earnings, a weak economy, and market overvaluation says the market should go down.