November 13, 2011
Weekly Market Outlook
By Keith Schneider
by Keith Schneider
PT Barnum allegedly said “There is a sucker born every minute”. The art of making money in the markets is not being the sucker, which entails ignoring most of the pontifications emanating from the promoters, (governments and central bankers). Watch the sleight of hand and better yet do the opposite after the market reacts; but not for too long, as people who actually believe the news can run things up and down just long enough to clean out your stops. Fade, then follow and then fade again. Rinse then repeat. However, currently you need to do this several times throughout the day. If done correctly, you are well on your way in becoming a Hedge Fund manager. The market rollercoaster is getting even more extreme! Down 400, up 250, down 100.
One would think that with all the noise and crosscurrents coming out of Europe, Asia, and the US, the markets would get exhausted, calm down and face reality. However, no one is sure what reality is. This week we had a dinner with an old friend (who will remain anonymous) who is ranked as one of top economists (according to the WSJ). When I asked about the world’s prognosis, the response was “I have not a clue.” This is what I suppose the bankers and government officials who are determining the world’s future are, clueless. This is a trading market and the key is to focus on very short term price patterns. Fear and greed prevail. Old fashioned tape reading comes in handy in times like these. Let’s go to the video to see what the markets are telling us now.
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