Even those of you who don’t enjoy charts will see the signs of an exhausted market just waiting for the sell signal from the Powers That Be to roll over.
Standard-issue financial pundits forget that “surprising” declines benefit those same select hands which kept the market lofting higher the past few months as volume (i.e. broad-based appetite for equities) declined.
The easiest way to make large profits is to go short when everyone else has been lulled into complacency/mild bullishness, then engineer a sharp downturn that triggers stops all the way down. Once the complacency has been replaced by fear and angst, then scoop up shares which have been discounted.
Rinse and repeat.
This is not investment advice (please see the HUGE GIANT BIG FAT DISCLAIMER below) but is that a voice crying “Look out below!” I hear? Previous entries on the same topic:
Look Out Below (I’ve got a bad feeling about this)
(October 8, 2010)
The Stock Market’s Long Decline Has Begun
(October 20, 2010)
HUGE GIANT BIG FAT DISCLAIMER: Nothing from Of Two Minds should be construed as investment advice or guidance. It is not intended as investment advice or guidance, nor is it offered as such. It is solely the opinion of the writer, who is NOT an investment counselor/professional. All the content of this website is solely an expression of his personal interests and is posted as free-of-charge opinion and commentary. If you seek investment advice, consult a registered, qualified investment counselor (As with any other professional service, confirm their track record and referrals).
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.