Thursday, June 12, 2008


the market was oversold and due for bounce, but it sure was a weak one, and that is troubling. all the oversold condition seems to have produced was some daytrading opportunities for short-term traders. if long-term investors were doing some bottom fishing today, they kept it so small it didn't prop up the market at all.

there is an old market saying, "don't fight the trend," and it should be pretty clear in which direction that trend is going. despite this poor action, i continue to hear the tired blandishments from the same old perma-bulls who want us to believe that things aren't all that bad, and that we are going to turn right back up very soon.

i see no reason to embrace those empty platitudes and that baseless optimism when the action in front of my face is so clearly negative. the goal in this sort of market environment should be to protect capital and not lose money. if you are short-term trading, you can try to do some scalping, but for those with longer time frames, the important thing is to embrace the idea of a downtrend and not be swayed by the popular media, which will constantly try to entice you to buy too early.

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