Still A Bull

Evidence of a bull market.  You buy it, it goes against you, and you wait.  In a short period of time, the market is ahead of where you bought em.

There have been so many times in my career that I have seen this happen with bull and bear markets.  Nothing goes straight up.  Even when you look at charts, they may look like they are going straight up, but the intraday trade is so volatile it forces traders into bad decisions.

Two days ago, I wrote that it’s a commodity bull. Yesterday, of course virtually all the commodity futures got killed on the open.  Some even closed lower.  If you bought them on the 19th, you were ticked at me. But the trend is your friend.  Look at the action in the grains and meats yesterday.  Hogs were lower for the early part of the day.  Then boom, a one hundred point rally out of nowhere.  Cattle and grains all followed suit.  If you sold them, you’d have better have taken profits quickly.  Today, there is a follow through rally in much of the commodity world.  Anyone that shorted will rush to cover, because you can’t keep a good market down.

The stock market is not much different.  I don’t put a lot of stock in old highs when markets get going.  Technical points that are in the way don’t have nearly as much meaning.  Over time, traders have lost a lot of money picking tops and bottoms in trending markets.

Keep this in your mind as you trade. Play from the long side, trade what you are comfortable with.  Be on the look out for anything that could snap the trend.  Any breaks in the bull are likely just profit taking.

However, this weekend-GO BEARS!

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