The Guessing Game

Just yesterday, I was chatting with a friend of mine and pleading for calmness in these markets. But he correctly pointed out that at best I can hope for a trend but calmness in these volatile conditions is next to impossible. When markets ignore economic fundamentals and start playing the game of guessing what the governments will do next, then it becomes an impossible situation for everybody concerned. Specially because most politicians might themselves not know what they will be doing and saying the next day. When they themselves are not aware of what they are going to do, how can markets guess what policy decisions are going to come out from them?

Given the folly of trying to guess the next political move, it is best to either invest for the long term or trade a system that tries to follow market movements for the short term. Anything in between is bound to fail.

I am currently long on both my STT and my LTT systems. STT goes short below 5546 and LTT goes short below 5446. Until then we ride the trend.

Current Positions: STT Long LTT Long

Possible trades:

STT: Cut long and go short < 5546

LTT: Cut long and go short < 5446.

Till then, enjoy the ride!