Sunday, January 8, 2012

8 Jan 2012

Today is one of those days that I know I don't know.  Yes, you come here to find out, and I'm telling you I have no idea.

Here's why:  most stuff I use for trading would say to buy the euro which makes it look like the risk on trade is continuing.  However, most stock indicators I use is saying that a correction (or worse) is getting more likely, and of course, everyone who reads Zerohedge knows something is wrong with the economy.

Paul Craig Roberts does a wonderful job describing what a lot of alternative media reading people have known for a few years now.

I closed some longs on Friday and opened some shorts.  Despite almost nailing the December turning point, most returns were very muted.

 Medium term.  Showing significant weakness compared to the last peak while the Dow marched higher.  Something wrong.
 Same for the my short term indicator, but for the last two peaks.
See the middle and bottom.  Both are as high as they can go.  Granted, they can and have flatlined at the top in the past for some time.  Are things currently that bullish?
 The advance decline line for the Russell 3000 shows significant weakness.  This corresponds with my two indicators above that disagree with the most watched Dow Jones 30.

"It is better that a man should tyrannize over his bank balance than over his fellow-citizens."
-- John Maynard Keynes

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