A near 3% day in the S&P will tend to get your attention. It got ours and we lifted our trading hedge, leaving us long the SPX. The downwave –up to now — didn’t trip the stop at 1131.
Trends start often with an explosion — especially in these markets. so aggressive traders might be buying — as we did. Traders not suffering from ADD might want to wait and see if there is an alpha-beta-gamma pattern here (http://www.edwards-magee.com/files/ggu/a-b-c-d.pdf ). That is the conservative thing to do.
We have watched with interest as the pundit-o-sphere has pulled all the old chestnuts out of the fire — the November-December Santa Claus rally, etc etc etc. We ignore all these things, except when we’re looking for a laugh. This time it’s different is our motto. It’s always different. Just listen to Ram Dass — be here now. Unless you need to get down to your local Occupy (fill in blank) Wall Street, local pub, football game, riot, 1% meeting…whatever.