Mike
06-27-2016, 10:22 AM
Everyone has commented on Brexit, nothing new here.
I updated the Watch lists in the High Growth Stocks area. I only have one stock on the long list and one on the short-side list. The action of the market on Friday has damaged many bases, and I believe it will take some time for the market to repair itself. I had to sell HAS but kept PLAY and GIMO. I tend to wait until the end of day or end of the week to sell positions. If institutions are going to protect their holdings, they will do so at the end of day or week.
My timeframe for trading is many months. The market action is bearish, and my long term horizon says we have been in a bear market for one year. If this view is correct, it is a strange bear market, probably caused by central bank operations where money has no place to go. Central banks have painted themselves into a corner and have taken us with them. I have believed since the 2008 financial crisis that Central banks are preventing the market from clearing. I guess that this will end very badly. Little known in the US, there is a petition in the process of convening a Constitutional Convention for the purpose of amending the constitution. The primary purpose of the convention would be to force the government to balance the budget. Two-thirds of the state legislatures must approve the initiative, and the results of the convention must be ratified by 75% of the legislatures. Conventional thinking suggests that this is too high of a bar for succeeding; the Article V process has only been used once and that was in 1787. But, conventional thinking wouldn't have Donald Trump as a candidate or Brittain leaving the EU. The process needs six more states to sign on and more than this number have teed up the issue in their respective legislatures. A successful move in this direction would be market-moving news as balancing the budget would likely produce worldwide austerity.
I updated the Watch lists in the High Growth Stocks area. I only have one stock on the long list and one on the short-side list. The action of the market on Friday has damaged many bases, and I believe it will take some time for the market to repair itself. I had to sell HAS but kept PLAY and GIMO. I tend to wait until the end of day or end of the week to sell positions. If institutions are going to protect their holdings, they will do so at the end of day or week.
My timeframe for trading is many months. The market action is bearish, and my long term horizon says we have been in a bear market for one year. If this view is correct, it is a strange bear market, probably caused by central bank operations where money has no place to go. Central banks have painted themselves into a corner and have taken us with them. I have believed since the 2008 financial crisis that Central banks are preventing the market from clearing. I guess that this will end very badly. Little known in the US, there is a petition in the process of convening a Constitutional Convention for the purpose of amending the constitution. The primary purpose of the convention would be to force the government to balance the budget. Two-thirds of the state legislatures must approve the initiative, and the results of the convention must be ratified by 75% of the legislatures. Conventional thinking suggests that this is too high of a bar for succeeding; the Article V process has only been used once and that was in 1787. But, conventional thinking wouldn't have Donald Trump as a candidate or Brittain leaving the EU. The process needs six more states to sign on and more than this number have teed up the issue in their respective legislatures. A successful move in this direction would be market-moving news as balancing the budget would likely produce worldwide austerity.