A trend will emerge at some point in stocks.
Like starter fluid being poured on an engine, at some point … the engine will turn over and ‘catch’, and a sustained trend will emerge. We cannot predict when this will happen. We just have to keep vigilant, and wait.
I was chopped a bit earlier this year, so as I suffered drawdown in my stocks, options and futures account. Thus, I am still defensive in that portion of my portfolio. This defensive strategy will allow me to ‘recoup’ those losses. If I have to allow time to pass for this strategy to bring my account perfromance back up, then I simply have to remain patient. That strategy is among the lowest of the low-effort strategies I have. It works, and works well. But I simply need to wait, and allow time to pass for it to work. So I may not have much to actually ‘do’ lately.
That being said, I am still watching stock trends. We have to clear the highs of the year, naturally being the 2117 region on the Spoos. My edge now favors the upside in stocks, with a wary eye on that level of resistance of the yearly highs. Of course, my edge also favored the upside on March 22, 2015, when stocks turned over and dumped lower.
But I know at some point, and I can’t predict when … but at some point … a trend will ‘catch’. It simply takes patience and persistence to be there when it does move higher.
As I said last night in the stock-twits tream, I closed out my EUR/AUD short profitably, and I am now fully short on NZD/USD. Although in the “Week in Review” podcast, I stated that I was a bit bullish on Silver prices if we could get a daily close above $16.61? At this point, I’m turning more and more into a Silver bear once again. Momentum seems to be picking up for downside.
We keep vigilant, and our eyes on the markets. At some point, a trend will ‘catch’ ..