The Peggy Lee Pattern…

Posted on Feb 26, 2011 by WHC Bassetti in Letters

Gray-bearded traders will remember (if they haven't been overtaken Alzheimer's) Peggy Lee and her disillusioned song, Is That All There Is? Which sort of encapsulates our reaction to the 4 day wavelet we (perhaps) saw end Friday. Is that it? Where is the double dip, the purging of the wicked and the return of fire and brimstone? The lack of follow-through makes us think that that's all there is. On the other hand, paranoia is often one of the valued characteristics of an investor/trader. In general we are probably much more inclined to take trades in apparently risky situations because we determine how much to risk and are always willing to terminate a trade when that point is hit. The favorable thing about the downwavelet is that the talking heads can now stop harping about the 60 day wave. We can start a new one. Which we expect.

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