When in doubt rely on a funny video to explain this market, unless you can find a better explanation that makes sense. (Post it in the comments.) If you haven’t seen the famous Honey Badger video click here. Because it shouldn’t be too hard to see that this market doesn’t seem to care one bit about bad news. Citibank earnings missed expectations, the European ESFS fund was downgraded by the S&P this morning and most of Europe was downgraded last Friday afternoon. Monday: Stocks rally 1% in the morning, S&P closes the day up 0.36% . Sounds like a Honey Badger “don’t care” type of market.
Everything I learned while at business school, would tell me that this market is overvalued, far to many economic headwinds, mixed economic reports, economic uncertainty, too much money printing and so forth. Yet the market still goes up. Well I have developed an algorithm for just this type of market. It takes the emotion out of trading. It’s the “don’t care” if the market goes up or down , let’s just make money. (Look to the right, it’s the Hardline portfolio) The numbers are telling me to buy this market (since 12/21). At least for the next 24 hours, but much like your GPS it recalculates when headed in the wrong direction. Things might change tomorrow… Who knows, maybe the Honey Badger? But let’s keep in mind there has been 10 trading days since the beginning of the year, only two have been down days.
Congratulations to Yahoo! Jerry Yang is finally out. Oh yes I have hard feelings because I would have made a nice little sum of cash, when Microsoft offered to buy Yahoo for $30 a few years ago. It’s a nice retirement party, when you resign from the board of the company that you co-founded and stock price goes up in the after hours. Ouch.
As for the 5 setups in 5 seconds… I’m going short. Maybe a little premature, but that’s where the profits are. Trade accordingly.
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