Went 35% S Fund during the week in hopes for a last gasp rally up to the 1150 area. I say one more rally for the summer which will end around mid-late August and will be just enough to get everybody back on the buy Euro/sell US Dollar, inflation is back trade. Also bought QQQQ at the open on Friday in the Roth IRA with 35% of cash. I couldn't resist, but made sure I used small positions. Always risk management and never swinging for the fences these days even though the machine wishes for those who have a long time horizons to buy relentlessly on every dip. I'm still pretty heavily invested in PRULX and TLT which will probably make one more run to 105-110, in which case I will sell since at that time they will be 'overvalued'.
The difference between comparisons to this market and 2004 and 1995, etc is that the Fed can not lower rates any further and has a limited amount of money left for QE which inevitably they will use up. Gold bugs think this is inflationary, but with some of the lowest rates in history, people are still not buying homes. GM knows they are screwed and is looking to unload millions of shares to the public who believe that GM will triple like Ford did off the March bottom. The unions want to retire like elephants and are going to sell sell sell like wildfire when their 401K shares hit the re-IPO.
HFT is completely out of control, but it's in the best interest for the good guys (aka Bulls or dreamers) to keep them in place because of their upside bias and ability to generate a short squeeze.
The retail mom and pop is done with stocks forever as the flow to bonds continues to increase. Will this thing pop? Yeah, probably, but don't forget that the bond market, at the end of the day, tracks inflation. Inflation has taken some time off for a while. I still think that if one were to stay in G the rest of the summer, they won't miss a thing. Once QE becomes factored into the market, the logical move will be to purge the excesses to begin paying down those due debts.
A quote from a friend of mine: "Don't forget that no matter how much money we make [with trading and investing], we can never buy back time missed with friends and family."
August is upon us already! If anybody has read any good financial books this summer, please let me know. I am always open to new reading suggestions.
The difference between comparisons to this market and 2004 and 1995, etc is that the Fed can not lower rates any further and has a limited amount of money left for QE which inevitably they will use up. Gold bugs think this is inflationary, but with some of the lowest rates in history, people are still not buying homes. GM knows they are screwed and is looking to unload millions of shares to the public who believe that GM will triple like Ford did off the March bottom. The unions want to retire like elephants and are going to sell sell sell like wildfire when their 401K shares hit the re-IPO.
HFT is completely out of control, but it's in the best interest for the good guys (aka Bulls or dreamers) to keep them in place because of their upside bias and ability to generate a short squeeze.
The retail mom and pop is done with stocks forever as the flow to bonds continues to increase. Will this thing pop? Yeah, probably, but don't forget that the bond market, at the end of the day, tracks inflation. Inflation has taken some time off for a while. I still think that if one were to stay in G the rest of the summer, they won't miss a thing. Once QE becomes factored into the market, the logical move will be to purge the excesses to begin paying down those due debts.
A quote from a friend of mine: "Don't forget that no matter how much money we make [with trading and investing], we can never buy back time missed with friends and family."
August is upon us already! If anybody has read any good financial books this summer, please let me know. I am always open to new reading suggestions.
. Still ahead of my market goal - to beat the S&P. 
