No Cure for the Summertime Blues?
Another messy day for the markets. A day like today you cannot win unless you are moving in and out daily. Plenty of chop.
I have been pounding the table about how mutual fund redemptions are going to skyrocket after the drop of the last few weeks. Sure enough (via the iBankCoin news feed):
Mutual Fund Outflows Surge After Downgrade
It is almost too many contradictions running headfirst into each other. Consider:
-Ultra low rates make saving via cash a waste
-Everyday people that are investors are doing less with the stock market because they don't want to chase
Where is this money going? Probably US bonds. Who needs QE3 right?
I will admit I am getting bored right now. I would love to open up some positions, but this is not my kind of market to trade.
Value investors get paid over time. Swing traders get paid during a trend. Day traders get paid by the hour.
My general type is more a longer term value (as I see it) type and I trade a bit in a pure swing style. I can't do much in this market, I cannot watch the tape all day long.
ChessNwine had a great thought today that I am partial to going forward:
"..one scenario that I am seriously considering is that we actually start to roll over for a few days and see shorts scramble into those bear flags proving true. At that point, we make a higher low on the S&P and then stabilize and turn higher. Since the market will usually do that which frustrates the majority, I think this scenario will frustrate those who have committed substantial capital looking for a market bottom as well as those bears looking for confirmation of bear flags in order to short. Here is what it would look like"Click the link for a chart of the idea. Would make sense!
Have a good night.