Yesterday the first day of the month strategy would have worked nicely for anyone who traded it. I did not because I don't do much day trading. I had some long positions that benefited from the rally since as we know when stocks rise so does everything else. This morning we have another small overnight decline as I create this post. So many of these have been reversed that it is hard to get excited about any of these as they are happening. We do know that if come noon time the market is down for the day, the PPT will execute buy programs to help remedy this situation. It is going to be very interesting to see if in the course of time between now and the election, and type of retracement takes place.
Comrade Ben is in full get Barry another term mode here, so I do expect to see he and his boys very active if we do find any trouble. If the stock market were at 6,000 instead of 13,000 and everything else in the world was exactly the same, there would be mass panic going on. They know this and that is why it is at 13,000. It is masking the underlying weak economic picture. We will begin to see the recovery spin fairly soon as a reason why socialism works, and that talk would not be possible with low stock prices. I can tell you that the one other primary business interest I have other than trading is with a large organization that is very tied to the day in day out economic picture. There is absolute panic going on internally with them right now. If there was a true recovery, this would not be happening.
These are difficult trading times. I have had so many days where I went home with quite a bit of equity in open positions only to see it vanish the next day due to how choppy everything has been. For the most part, shorts have not worked very well in many places due to underlying stock bid and the effort by the FED to create inflation. However, I am not going to get into the habit of being a rabbit on all my trades just jumping all over the place. Once a more normal flow comes back to the markets, I am not going to be that guy who missed the moves because he had become a hack amateur.
No charts today, I just don't see anything new that bears a discussion. My shorts I mentioned in the energies, Crude and Heating Oil became scratches yesterday on those monster reversals that took place in those two markets. Go work on your golf swing until things pick up.