Who Knows Really?

Posted on Aug 17 2015 - 11:38am by Sharpe Trade

I have stated in the last few entries and the podcast, that I feel that the stock market looks like it is about due for a correction.  It has that ‘feel’ to it.

This morning, the Spoos, or S&P 500 Index is up about 4.41 points, at the time of this writing. So … are we losing money?  After all, I said I thought the market was about to slide lower.  It’s not sliding lower.  It’s up.  So again, we ask … are we losing money?

Remember … we trade without thought as to predictions.  So in actuality, our positions are up … oh … about 1.18 points today.

Learn to trade the markets, without a thought, and without a care as to the direction of the market.  As we are doing in The Sharpe Report, which is now up 229 BPS since June 9th, 2015. 

2 Comments so far. Feel free to join this conversation.

  1. Brian August 17, 2015 at 4:50 pm - Reply

    Looks like we’ll be stuck in flatland for awhile with the indices trading in increasingly tighter ranges.

    Dan, do you know a guy named Mike Swanson? He’s had bearish feelings for weeks, citing the internal breakdown of the market. Here’s one of his videos:


    Your thought about the market going down may turn out to be right later.

    P.S. Dan, have you talked about emerging markets in more detail before? I remember you described the volatility of the Chinese market in a past post, but nothing else.

    • Dan August 17, 2015 at 6:06 pm - Reply

      Heyya Brian,

      I haven’t heard of him, but I will say that yeah … the market breadth has not been there in the market as of late. Another reason why I am pretty cautious.

      I’m no toverly concerned. I mean, the High Yield spread, which everyone likes to tout lately is spking, but hey … that’s High Yield ya know? 🙂 Myself, I’m watching quality credit spreads, and I’m not really seeing a 2007 – 2008 repeat. In fact, it seems the credit in some markets is loosening up, rather than tightening.

      So I can totally see a 10% correction. More than that? I’m just not seeing it at the moment.



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