10/27/2006

Market correction

Markets have not corrected so far and sector rotation continues. But I am now extremely cautious on market direction. Sometimes moves like yesterdays are misleading. So I am expecting a correction at this stage and protecting profits is first priority.

The earning based trades is what I am willing to continue to invest in because, they work very differently.

6 comments:

walter said...

GDP!

We knew it was coming... or rather, at least Nouriel did...

walter said...

i forgot to mention that dow and rest of market will most likely rally on this news...

Pradeep Bonde said...

Unfortunately market dos not work based on such predictions. What is the trade in it. Markets look several cycle ahead.

Today morning I issued a bearish correction call to some of the traders who track my recommendations based on same indicator I used to go bullish in August.

My point is simple, build your own trading indicator and shut out lot of macro noise. Your indicators should be ahead of curve.

As Ed Seykota says " Good traders trade. Good letter writers write letters."

walter said...

boom long?

walter said...

my only point was that Nouriel was right, and others have been reducing estimates as today approached - thats all...

making no connection about how to trade it...

walter said...

i only look at charts for trading - i read stuff just to stay an informed citizen of the world...