Once again there is not one single stock that is setup near the 50 and 200 day moving average that is rolling over and breaking down on heavy volume. The lack of these historically high odd setups is the reason no one has been making money the past seven months. Longs nor shorts work right here as the market from 1/24/08 to 8/25/08 has moved a whole .20%. There are times to make great money like in 1999 and 2003 where there are stocks making 300-2000% runs for the bulls. Then there are markets that are great to short like 2000-2002 when many internet stocks fell 80% to 99%. Sometimes the right thing to do is nothing which reminds me of one of the smartest quotes by Gerald Loeb:
“Profits can be made safely ONLY when the opportunity is available and NOT just because they happen to be desired or needed …Willingness and ability to hold funds UNINVESTED while WAITING for real opportunities is a key to success in the battle for invesment survival.”–Gerald Loeb
Gerald Loeb wasn’t one of the all-time greatest investors for no reason. Livermore thought those who had to always trade no matter what were FOOLS. I feel the same way. If you are still investing in this market like it is 2003 you are being a FOOL. There is no need to be FOOL. Right now, CASH IS KING!
