WS Opinion needed

Question

WS,I consider you a very good player in this game so I need your advice.  Monday I went 100% cash, even sold my metals, thinking this market was overbought across the board. I figured Goldman woud find enough buyers at high prices then let the computers take this back to 8k.  Of course now everyone is saying Dow 12k, Bull Market, 3.7 trillin in cash waiting to jump in, the housing problem is really only in a few states, unemployment isn&#x27;t that bad, Companies fundamentals don&#x27;t matter etc, etc..  Do you think with all the continued bad news, regardless if talking heads spin it as good news, this market can keep going short term?  I thought for sure things would tank on MSFT, AXP, BRCM, AMZN news instead another up day?Thanks

PALLADIUM · Answer

WS,I consider you a very good player in this game so I need your advice.  Monday I went 100% cash, even sold my metals, thinking this market was overbought across the board. I figured Goldman woud find enough buyers at high prices then let the computers take this back to 8k.  Of course now everyone is saying Dow 12k, Bull Market, 3.7 trillin in cash waiting to jump in, the housing problem is really only in a few states, unemployment isn&#x27;t that bad, Companies fundamentals don&#x27;t matter etc, etc..  Do you think with all the continued bad news, regardless if talking heads spin it as good news, this market can keep going short term?  I thought for sure things would tank on MSFT, AXP, BRCM, AMZN news instead another up day?Thanks

wallstreetcappers · Answer

Well I have learned that you cannot fight the tape and the tape tells us how to trade, and when I have lost the most it is when I either ignore or fight the tape.

The market is being supported and has depth. The way they keep bringing it back in the face of bad news, especially late in the trading day tells me that we can keep going higher.

Does it make sense? Of course not, I wondered how given the conditions we were facing that the market went to highs last year, I didnt get it but the tape was talking and so I just shrugged my shoulders and kept watching.

I am in a few stocks but mostly cash myself..taking profits and trading in spots. I think we do come down at least one more time, but guessing the date it happens is impossible.

There are underlying themes going on which make me wonder if we will get that drop back to the 7k area..maybe we never go back there.

To get us back to 8k and below there has to be a heavy catalyst, that is what took us down there in the first place..so the doors have to be busting down for us to get a severe correction, maybe we are getting setup for a monster sucker punch and that happens when the heavy hitters return after Labor Day.

If we get a sucker punch move lower it will be if some serious news comes out from the financials, a world event which is enormous, or if they set up the market over 10k by the beginning of September and the big money has been selling into the move and wants to collect on the short side.

WS Opinion needed

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