Being nimble is the key

• Posted by admin
• on March 8th, 2010

There is panic in the bear land now. The writing was always on the wall but bears chose to ignore the warning signs. It’s not that we were always bullish since March bottom. We turned bearish at every big correction on the way. We missed the start of every correction since March bottom but were nimble enough to change our bias from long to short and back to long when things stabilized. We have played this market better than the majority, be it the crash of 08 or the rally of 09. Many think that catching the top or bottom is the name of the game. On the contrary, the trick is in sensing the turn quickly rather than in anticipating a turn.

We keep it simple here. We let the market do the heavy lifting for us. We let it choose the route and we just follow it. The problem with so called stock market experts is that they map the route for the market and expect the market to take that route. And then there are some megalomaniacs who think that they can dictate the market to do their bidding.

As for the market, long is the name. This market has ways to go on the upside. Nasdaq has already made a new closing high for the year. It’s only a matter of time before the other indexes follow suit. Some are saying that only Nasdaq has made a closing new high and that’s a bearish non confirmation by other indexes. I find this hilarious. If all the indexes do not make new highs on the same day then it’s a non confirmation! How intuitive? Who comes up with these fancy theories? I guess some folks would go to any extent to not desert their pre conceived bias.

Any correction is an opportunity. Now I do not need to show any chart or video to convey something as simple as this. If I show a chart then it will open a whole new Pandora’s box. Some will say that the volume is missing and others would say that the market is overbought. I can’t deny any of this but still feel that the market is going much higher. I trust my feel for the market more than anything else because it has kept me on the right side of the market most of the times. And times when I have been on the wrong side, it has conveyed it to me quickly. I am not worried of being wrong but always on the lookout to correct the mistake quickly if I am. Anyone aiming for perfection will not survive in this market, period. This market hates perfectionists. Just play ball with the market and it will let you make something out of it.

More from Thinking Trades

• Market on the edge
• The writing is on the wall
• Nasdaq is the key
• Execution is key
• Buy the dip

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