Will be heading to the south of France next week (trading seminars), so blogging will be "light", unless of course we get a major bullish reversal.
My trading system vis à vis the SP 500 still reads "Neutral" in both short and long term trading.
We are suddenly seing more talks of a double dip, bearish outlook, and all kinds of reasons why you should get out of the market ....
Experience teaches me one thing ; after a crash, markets tend to form
"wild volatile bottoms", with large price swings.
In the meantime, we tend to forget that we are basically forgeting what drives the market ; future earnings .... and guess what , the future looks quite good :)
Oh, but you'll tell me about all those countries almost bankrupt .....
You'll remind me that the debt crisis is far from over .....
Focus on the items you will trade ! Do not try to become an expert at many things .....
Do not try to become an economist .....
I expect more wild swings to come, then a huge rally that will probably last 2 to 3 years until the next crash ....
Commoditiy related companies will rule , becoming the heavyweights of the SP 500.
Expect more mergers in the months to come, sending financials much higher