Having read your blog on a continuous basis, I am puzzled by a possible inconsistency.
On the one hand, you have a reality-based view -- whether based on technical factors (charts/patterns) or fundamental factors (the state and outlook for the real economy) or both -- that the market is overvalued and that there is absolutely no justification for the SPX (SPUZ) to be at its current level, not to mention its going up with virtually no pause.
On the other hand, you seem to have an equally strong view that "the fix is in" and for political (and other unknown reasons) the forces that be -- i.e., the Wall Street biggies and Wash.DC are ensuring that the market continues to trade up.
Here is the inconsistency: If you believe both to be true, why is your trading basically biased short/bearish? If the fix is really in, why not accept it and at least moderate the bearish sentiment? The economy and technicals are what they are, but if there are outside influences that you really believe are operative, shouldn't that be a factor in the directional bias?
JB,
ReplyDeleteHaving read your blog on a continuous basis, I am puzzled by a possible inconsistency.
On the one hand, you have a reality-based view -- whether based on technical factors (charts/patterns) or fundamental factors (the state and outlook for the real economy) or both -- that the market is overvalued and that there is absolutely no justification for the SPX (SPUZ) to be at its current level, not to mention its going up with virtually no pause.
On the other hand, you seem to have an equally strong view that "the fix is in" and for political (and other unknown reasons) the forces that be -- i.e., the Wall Street biggies and Wash.DC are ensuring that the market continues to trade up.
Here is the inconsistency: If you believe both to be true, why is your trading basically biased short/bearish? If the fix is really in, why not accept it and at least moderate the bearish sentiment? The economy and technicals are what they are, but if there are outside influences that you really believe are operative, shouldn't that be a factor in the directional bias?
falco peregrino