Monday, March 5, 2012

Market Chatter Turns Bearish




 How quickly the scenes change in the ever-evolving world of the stock market. All of a sudden we are confronted by an irritating couple of days of indecision on the markets and ...


 OH NO! A pull back!


 Heaven forbid the markets might want to take a breather and have some profit-takers carry the markets down for a few days. We're supposed to go straight up, after all.


 When we don't, all the tekkies once again jump on the bearish bandwagon.


 Where in the rule books has it ever said the markets can't continue going straight up with little more than a minor pullback?


 The markets are going to do whatever they decide to do. Our mistake is thinking we've got it all figured out.


 Last I checked, people have been calling for a pullback for the last two months (much longer, for some people). Impatient bears have been shorting, nervous bulls have been selling and what have the markets done?


 They've continued on an upward path, despite all our educational market timing "tools."


  And now, over the last few days ... finally, we get a couple of inconsequential little reversals in the markets and out comes the bear in all of us.


 And what happens if we continue to go up? Bears will once again be stuck covering (like they've been doing for three years now) and nervous bulls who sold will be relegated to the sidelines waiting for the next "top" because they missed out on yet another profitable bull run and are now in the unenviable position of trying to time the "next-to-next" top so they can go short, and join forces with all the other retail bears.


 If you haven't already figured it out, retail bears have been predominantly wrong since we bottomed back in 2009. Of course, this little detail hasn't stopped them from going out of their way trying to influence the bulls among us to sell everything and go short.


 Go ahead and listen to the short-sellers if it makes you feel any better.


 Sooner or later, if they've got any money left, retail bears are bound to be right.


 Thus far, however, it looks like the big money is playing games with the little money.

 Maybe I'm wrong and the big players are all hovering over the "nuke" button, waiting to see who will pull the trigger first.





 
  Nothing good would come of it, though. One financial missle begets another ...























Always perform your own due diligence. These are only my opinions.