Boring and Artificial - November 8,2011

[Billy]

Billy,

Do you think we can go to SPX 1350s without Robot generating buy signal? It's probably impossible to know now what the statistics will be, but you can shed some light on probable outcomes if you want.

Thanks.

Andrei,
Yes, it could very well drift and seesaw higher to old highs, pushed by worldwide QE and defying all robot statistics. We might see a rare scenario of the robot signals underperforming the 20 DMF signals.
The US market is the safest place to invest currently and it helps on the bidding side. But I think a pan-European political crisis is now emerging out of the monetary crisis and panic selling could trigger at any moment. The next step is a new European monetary system and uncertainty will prevail for a long time before a final agreement can be reached.
There is no clear setup or edge. As Ivan Hoff wrote today: “Our job is to make money, not to trade.” If one makes money being long and targeting SP 500 at 1350, it will be pure luck IMHO, not the result of a sound trading plan.
Billy