Barry R. explains the nuance and intricacies of momentum trading:
"Meanwhile, the S&P trading range has held, and markets are still in breakout mode. Until they fade, in which case they obviously were not in breakout mode, but rather breakdown mode. In which case they will go lower, until they find support (unless that breaks) and then they go lower and find support (that holds) in which case they can reverse. Unless they don’t. If that happens, you might have been caught leaning the wrong way, which helps set the stage for the next turnaround. Unless it doesn’t. Which goes to show you how dangerous crowded trades can be. Unless they continue, cause after all we know the trend is your friend and you can’t fight the tape and its tough to be a contrarian and long and strong is the posture you want. Until it all goes into reverse, and then the trend is not your friend and you should not have gone along to get along with a tape that was a bull trap and it looks like we are heading lower. Unless we don’t.
Meanwhile, I gotta go. (Unless I don’t)."
I'm thinking I'm not the only one here who sees hisownself or herself somewhere in that runon paragraph.
http://www.ritholtz.com/blog/
Comments
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Every once in awhile, one reads something that just seems to click.............
I needed this final piece of the investment puzzle to allow this house to position our portfolio in a more favorable circumstance.
I really need to print this and learn the text word for word and run it pass a few friends the next time they have a question about market direction.
I am a' think'in that he really did have to go; as in potty break.
Take care,
Catch
Very well done.
I suspect you will take immediate action upon your portfolio to properly adjust what was an apparently flawed model based upon your studies and guides for investing using human nature, fundamentals and technical scale modeling, with a pinch of SF astrology thrown in the mix.
When you have completed your final interpretation and analysis of Mr. R's statement; will you please share with us the final guiding light of wisdom, so that we too, may all have the positive "momentum".
I know you are up to the task.
Thank you in advance for your fine efforts.
Regards,
Catch