The big headline from the weekend was Russia moving into the Ukraine with ground forces. Fears over a conflict spread throughout Twittersphere and Blogosphere. Overnight we had geopolitical experts spewing nonsense regarding the situation. Our focus is purely price driven and given the move off the lows was a step in the right direction. If price deteriorates any further we’ll have to adjust our current positioning, but for now we looking for this uptrend to continue higher. Perhaps this will lead to a new bear market, but at this point we do not have enough evidence to change our stance. Our uptrend remains intact and we continue to stick with our uptrend.
We saw quite a bit of fear over the market collapsing in one day. The 1987 crash took time and so did 1997, 98, 2000, and 2008. It never happens in one day and price will always give you a hint in advance of an impending disaster. Many didn’t see 1987 and other market drops because they weren’t focus on priced. If one simply follows a trend following strategy you will not miss a big trend. While you may sustain losses along the way, you’ll maximize your returns if you stick to the strategy.
Economic data didn’t appear to be awful with personal income and spending up better than expected. New car sales were certainly hurt by weather, but if you were in the market to buy a car during a storm you are likely to buy that car when weather gets better. Weather is likely just delaying sales. Weather is another piece of noise for those who find the need to listen to. PMI figures were better than expected from the ISM and Markit. Our attention is price while the rest of the world will pay attention to the nonsense from Eastern Europe.
March certainly came in like a Lion with the selling today. It is just one day and given the move off the lows there is a bias to the long side with buyers lurking around lows. Stick with the trend by riding your winners and shedding losers.
