THERE IS NOT MUCH ELSE TO SAY
I think at this point it is time to come forward with my inner monologue. I have had a thought in my head now for quite some time and here it is.
It has become time to ignore the short side of the markets indefinitely
I am sure most people reading are going to think I have lost my mind by making this statement. We know the economic situation is truly awful, nobody can argue that. However, what also cannot be argued is that every time we get a brief down move almost anywhere, it is immediately violently reversed with a seemingly bad story that should hasten the decline. Releasing a story about how more good money is being thrown away to feed socialism, is not a good situation. The story out of Europe about yet another bail out is horseshit. This will mean that the place it comes from will now be at risk as well. This is not good news that should send the markets flying upward. We are giving money to people who will never pay it back, it just poofed! All else being equal, that should pummel financial markets, yet it does not.
What happened yesterday in the US court system was shocking, a very bad omen for the whole world. The previously last standing place in the world that stood for freedom, no longer does. Essentially re-writing the bill for the democrats, the Supreme Court has now said that there is no limit to the taxing ability of the Congress. This is much worse them holding up the law on the basis of the challenge, the commerce clause. What we are seeing in New York with the 16 oz soda stuff, is now spreading everywhere. I have never witnessed a fundamental changing event in my life until the last few years, so from that perspective this is all very interesting. I do remember asking my dad what it was like when we dropped the bomb on Japan? How did he feel? It was such a history changing event, I was just so curious to try and re-enact it for myself so see how I would have felt. The reason was that things were so steady here, that I did not think such a life changing event would occur in my lifetime.
I was wrong.
The governments are taking over on a level I just never thought could ever be possible. How could they ever hope to control our every move? They have completely taken over the markets now. I plan to just use these brief periods of dips that occur for a month or two as places to position on the long side and basically forget the short side from now on. This is just in my bigger picture views, I will still trade shorts on a short term basis but with a lease that is incredibly short. Sometimes you just have to admit when your opponent is getting over on you. They are getting over now, plain and simple.
They are establishing a new order and it does not involve us. We need to fight via voting, but short of civil unrest, which is going to follow as surely as the sun will rise tomorrow, they are going to keep pushing us down as far as they can.
We do know at some point this whole thing will implode, and I think it will be obvious when that happens. Until that time, I think it is entirely pointless to look for the big one on the down side, it ain't coming. They can buy futures like they did yesterday to reverse the decline in the last hour, then again do the same thing in the night session when the volume is lighter. There is nothing we can do to stop this right now, so go with it plain and simple.
This is not really a bad thing for traders, we now have a deck stacked in one direction in a way it has never been, this gives us a tremendous edge we need to exploit. How to buy these dips is up to individuals as to how you go about it. Sometimes they get deep like the recent one we have had, where it takes big stones to hold on that long.
Maybe a down type of post, but I am a realist, and I have to admit, they are getting over on us right now. The Scoreboard does not lie unlike someone else who does it frequently to all of us, as affirmed by the court.