More of the Same...

Same as yesterday. Low volume movements in the markets. The volume today was even weaker than yesterday. When you have weaker volume this signals that we are hanging on by a thread. Trades are getting very difficult. Again, this is why I am not doing much buying. It is pointless to be trying to buy things that look to be "a good deal". Because trying to do that will lead you to losing money by trying to swing in this market. Yesterday I dipped my toes into one swing trade on a good sector and a good stock, but it got stopped out today. Nothing is immune to the wild fluctuations occurring in this market environment.

I have seen some newsletters from other sites and other blogs claiming that it is time to buy and load up on stocks. If you don't care about money management then fine, go right ahead. But by doing so your essentially placing yourself in a 5 lane highway at rush hour just asking to be taken out. If you value your life you would not go stand in the middle of the highway at rush hour. So why do the same thing with your money. This is NOT a normal market that you can simply look both ways and safely cross the street. We are far from a normal market and some well respected people are making a good case for why we could be in the beginning stages of a bear market.

There are still technical indications that the market could still drop hard again. It is currently hanging by a thread and the slightest bit of bad economic date will cut the thread and we will fall again. There is no confidence in equities and that is being seen in the lack of volume. That lack of confidence could result in the markets going either way. This market is being driven by events right now. And anyone that claims that "a bottom is in" and starts buying everything is foolish and is simply just being sucked into the emotions of the market. A well rounded, and disciplined trader never lets their emotions get in the way of trading. For if you ever find yourself getting mad at your computer screen while watching the markets then you have crossed the threshold and need to take a step back. Money management, common sense, discipline, and above all a level head will keep your money safe and at the same time able to pick the right stocks at the right time.

For those that write to me saying I should be buying more stocks here I can only say to you that when the markets tells me it is time then I will. I can't tell the markets what to do. Anyone who says that the market "did not play out the way it should have" are clearly on the wrong side of this game. The markets are always right, no matter what they do. We have to just wait until they are correct for us.

Never argue with the stock market, for if you do you will lose!