I do plan on adding much more to this blog over the coming days and weeks but client reports and trading are taking the bulk of my time.
From my view, the move off the March lows is really not that surprising. Markets that refuse to come in with extreme overbought or oversold readings usually have more work to do in their primary direction. If you look at market history you’ll find similar rallies after such spectacular waterfall declines: 1938 and 1975 come to mind.
But what is the hardest trade to make in this kind of unrelenting market? In my opinion its to do nothing, to sit on your hands. Famed early 20th century trader Jesse Livermore once said “It was never my thinking that made the big money for me, it always was my sitting.” That, might be the hardest trade of all today.