A full blown … 20% from the highs … Jim Cramer is in tears … my aunt is calling me on the phone about what do do … shake out the weak hands … financial media starts freaking out …. crash.
I’m left with a measly, statistically normal, 10% correction. We received such a correction in October 2014, and it looks like we just received another one. I was hoping for just a little more downside.
And then it happened.
Last night I decided to read what one of my favorite “market suckers” had to say about the state of stocks. People so awful at market direction, you read what they have to say out of the same morbid curiosity that draws you to watch videos late at night on YouTube of plane crashes.
Sure enough … they were bearish on stocks.
And that confirmed it in my mind. For right now, I think that may be all we get.
No, I will not tell you who this ‘market sucker’ is. The last time I talked publicly one of my ‘market suckers’, they stopped posting their thoughts. They disappeared from the inter-tubes. I killed my own golden goose.
Remember this, if you remember nothing else. It’s something I heard from a trader in New York years ago, and it is the absolute truth …
There is no system, no chart, no technical indicator, no macro view and analysis, NOTHING more powerful … than someone who sucks …
Simply do the opposite of what they do.
I still hold my longs from last two weeks. I may hold them for another 20 days or so. A retest of 1954 would not surprise me in the least. I was hoping that I would face the next rally as un-hedged, and naked long as a greenhorn trader. But alas, that is not the case. I’m hedged off.
Mind you, cash would still have been the best position for the last 30 days.
So I remain predominately long this market.
Albeit a little frustrated ….