Boy I’m exhausted! It’s been a long week for me…and from the looks of it, the coming weeks will be just the same. But anyways, I hope the rest of you are doing well. Most of you know that I don’t usually make a post if I feel that the overall direction of the market is still the same but I thought I’d make one anyways. It’s been a while, so why not, eh? But before you read any further, I should again mention that none of my opinions about the market have changed…so if you haven’t read my previous post please go ahead and do so :) 

While some bloggers are full out bullish right now, most are just confused with the general direction of the markets. These bullish bloggers are indicating inverted head and shoulder patterns (refer to the below example) and W formations.

It is very rare for me to not pick a direction, but I’d have to agree with most of the bloggers…I don’t know WTF is going on! Taken from Trader Mike…”Here’s what Rev. Shark had to say about the current environment, or as he called it, a freakshow market:

This is one of the most difficult markets I have ever tried to trade. Most of the experienced traders I know are frozen and doing nothing because the action is so random. I’ve heard this called a “freakshow” market because things are so far from normal. No one seems willing to trust a trade to work for more than a few hours, and that just adds to the randomness.

As both Alan Farley and Dan Fitzpatrick have said, we just have to wait it out. Just don’t lose money now, and sooner or later, we’ll get some better trading. I’d almost prefer a big one-day crash to speed things up, but I don’t think it is going to happen that way. We are going to slowly and painfully work through this.”

To sum it up, most people (like myself) are clueless right now…everyone’s eyes are on the government rescue package. Do yourself a favor and position yourself in cash right now…I’ve mentioned this in many of my posts but CAPITAL PRESERVATION IS KEY!

It is still likely that the government will follow through with this package, but if I had to speculate on what’s going to happen next I’d tell you that in the short-run we’re going to head up but even if the bailout goes through people will eventually realize that the economy is still in the ruins…and another leg down will begin.

Richard
richard[at]hedgeagainstspeculation.com