Best advice of all. I don't think it ever hurts to sit on the side lines and wait it out. Stepping back and removing the emotions of having something on the line always improves perspective. It's not a bad thing to admit you don't have a good feel for what's happening. Let the smarter people fight it out. I just want to pick up some scraps along the way.
on gold: 82million ounces produced world wild a year (2500 tons or so) ... chinese reserve demand is approx 700tons of that this year I believe. Total of all gold produced worldwide in a year is ~ 52billion US dollars at today's prices. Its a tiny market, considering 1 LBO deal (TXU) goes for 32 billion nowadays. And I won't even compare it to the money flying around in companies buying back stock. gold can go to 1000 or 1500 easily simply because its so cheap and there's so little. Bill Gates could buy 2007's entirely world gold production ... that says something about supply. Its just a matter of what's the flavor of the month ...
Just want to clarify something here. Bylosellhi and I are saying that there is a potential for a greater correction than what is being anticipated. We are giving our opinion on what might occur. I also share his viewpoint on the US real estate market and the economy in general. Of course, no one knows for sure what will happen. Regardless of our opinions, as far as trading is concerned, if you are a professional full-time trader, this volatility is EXACTLY what you look for - because you know how to trade from the long and the short side, and you have seen markets move violently and quickly. You don't stand aside. ET is full of traders who have only done one type of trading - going long "buying the dips" in a protracted bull market. Everyone saying they don't know how to trade this market hasn't been around long enough to see this - and are getting worked over by the traders who have seen corrections and bear markets. No disrespect intended, but a lot of traders on this site haven't seen real damage until now. Although I am just beginning on the path of futures trading, I did work in the markets for a number of years in fixed income - and I can tell you this - if this market action scares you, you haven't been around long enough, and you ain't seen nothin' yet
sticking to my argument. day isn't over. half hour left, but bears are losing steam. and considering futures were down so much last night, i would've expected a little more follow though. any close above 1720 on nq, 1375 on es, or 12100 on ym is a win for the bulls. what the bulls really need is a convincing short covering rally. maybe tommorow; maybe next week.
Woo-hoo! Setting up nicely for another ghastly week. If we take out 12000 on the DJIA, 2300 on the Naz and 1360 on the S&P, every man for himself!!!!!!! (Including Abby Joseph Cohen - I still think it's a man)
they aren't done positioning themselves in Asia, so they will close US markets negative, so Asia has negative sentiment. The forerunners are still short Asian Indicies and want bigger profits on those positions. US will only close positive when they are done hitting Asia.