Tuesday, August 11, 2009

Back to Work!

Wow, it has been a while since I have had the time to post. Working a full time job and trading is a tricky thing to pull off. These last few weeks have just been too chaotic to be able to put together good trades. The time off has been good. It has given me a chance to do some thinking about the health and future direction of the financial markets. Unfortunately for the "buy and holders", I think the market is gonna be shaky at best.

Why would I think somewhat bearishly about the market? Well, it is pretty simple really. Over the last few months we have seen an incredible rally in the markets... but why? What, fundamentaly has changed? The nation is continuing to lose jobs. The GDP is only showing signs of improvement because of increased government spending. These facts should not be fueling a bull run. So what is fueling this bull run? Traders. But traders are not enough to prop up a market indefinitely. Eventually traders take profit, and when they do, the markets will be making a nasty move down.

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