It’s usual for individuals to adopt an ‘either-or‘ look at the market.
Bearish, or bullish.
Personally, I’m ‘flat’ at the moment in my bias on equity prices. While at the same time, running processes that are long, albeit hedged.
However, this is all beside the primary point I would like to make today.
My point, actually has to do with what usually comes to pass. I would say: expect … the unexpected.
Read public ideas regarding the direction of stock indices. Read twitter streams. Read articles. Listen to financial media. For no other purpose than to try to determine the tone of the market’s participants. Usually you will find a common theme, during any given month.
For example, at the moment? I’m finding it hard to find anyone that believes that we rally in the stock indices for the rest of the year? Which leads me to believe that the rally we experienced today, might have some legs behind it.
Because I’ve learned to expect, the unexpected …