Waiting on the Weight ~ The Risk Averse Alert

Wednesday, April 07, 2010

Waiting on the Weight

Judging by recent experience following a day's trading when volume picks up from otherwise subdued readings accompanying the bulk of the market's advance off early-February bottom, we are in for a day or three of levitating, and this quite likely while maintaining a similar, upwardly sloping bias...


From this perspective top still appears some days away. If today's turn lower had continued this week's rather subdued trading activity, then I might be inclined to suspect top is in. Today would have been seen a first sign of stocks falling of their own weight.

Instead, it appears continuing for a few days more will be that tightly controlled, orderly offloading of shares such as manufactures time necessary to erase fearsome memories of the recent financial crisis among the vast majority of suckers who are easily deceived by technical comparisons with a past that, today, might as well have been the stone age.

And speaking of the stone age...

Do you remember the day when Wall Street could market U.S. Treasury securities without having to fan the flames of a fearsome fire threatening to consume the globe with financial chaos, doing this because, absent the mechanism for conducting a global carry trade the charade of solvency of the financial system would evaporate in an instant?

Fast Money
* * * * *

© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!