Mal: Everyone always does. That's what makes us special
--From Firefly, The Series
Everyone has the advantage over the retail trader. That's why we have to try harder.
The world according to the SP500 converges at the magical 1265 mark. And here we are again.
Two days of distribution triggered by appeasement of traders who wanted to hear the magic word. Go figure. Not even some pleasant words from the Cisco Kid could mollify the madness.
For what it's worth, proprietary risk tools (my son Conor's personal achievement) flashed correction yesterday, according to the most sanguine sources.
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Of course, to every time there is a season, and there's a lot of oversold ETFs out there now, so we'll see what tomorrow brings.
I'm calling today 'Raschke Day' because Linda Raschke has a saying about the 'market doing the most obvious thing in the least obvious way.' What could be more obvious than a decline after traders bought up to the Fed announcement, and what could be less obvious than a strong opening to fleece the retail 'late to the party' traders. I'm sure they're chuckling about it tonight,
while sipping chablis.___________________________________________________________________
What was working? Energy and to an extent tech. And what lagged? Financials, consumer discretionary, and industrials.
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A couple of days away from the screen might be good for me, although more days like today might make me feel differently.
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Finally, the Big Three mean reversion tells say 1) Worden T2108 is back below 60%, the Stochastics oversold of the SP500 is at 16%, and the
Mamis-Meisler breadth oscillator is still above the zero line, for those who care about such matters.
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You can never learn too much about the message of the market and I'll be continuing to try to learn how to sniff it out.
Good trading and great risk management.
Educational use only. Never intended as advice.
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