Warren Buffets suggests that investors should be greedy when others are fearful! He is addressing sentiment with this idea, in other words, “Markets reward Discomfort!” Sentiment is almost like “comfort food!” It often tastes good, yet is it healthy?
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Suggested to “Go LONG,” due to a currency pattern and a large degree of “DISCOMFORT” was at hand (see post here). The large amount of “discomfort” the first of September, most likely had something to do with the market producing the BEST September in decades. It was these “Pattern Tools” that helped us capture a good deal of pocket change during that rally.
With the leading NDX 100 at the top of the channel and COMFORT LEVELS VERY HIGH…… I am UNCOMFORTABLE with exposure in this market until a breakout takes place!
Sandy…Honored and humbled by your comments. Will let you know and appreciate you interest more than you know.
All the best,
Chris
Please plan on letting us know the tour schedule as far in advance as possible. I want to make sure I adjust my work schedule and make travel plans so I can attend!
I am so-o-o-o-o-o uncomfortable with this market, i must be about to become rich.
KY…haven’t finalized the cities, yet southern California most likely will be one of the areas.
Nationwide Insurance/Investments had me do a 60 city tour in 90 days, discussing the advantages of “active management” inside of the 401k complex, 5 years ago.
I attempted to educate investors that tools/products were available to make 401k’s work for investors during challenging stock market performance.
Was a great tour, just WAY to many cities.
Which cities are you planning to tour. Hope you’ll consider LA.
TA…Am humbled by your suggestion. Actually friends have encouraged me to write a book since the early 2000’s. If God gives me enough time, I do plan on writing one. It will address the “Power of Discovery!” I want to empower/lead people to “Discover” not TELL them what to do…
Per your “you are usually terse” comment, if that means I am “too brief” it is by design…I am a “ockhams razor” fan. If you are not familiar with Ockhams razor, do a google search. His basic thought, the simplier the solution the better. He believes one should “shave ideas” down to the basic cause of something happening.
I believe price reflects all known knowledge at that point in time on the planet. Since we buy and sell price, I feel price/patterns should do the talking, NOT ME!
I am honored that people would want to know more about what I am thinking! I have traveled the country as a paid speaker in the past. Next year I plan on doing a 5 to 7 city tour around the country… If people are looking for a seminar full of pictures and a want to hear from a boring ole charting guy, they will get a chance!
Again TA, am deeply honored by your thought!
Chris
Thank you for bringing us back to earth…sentiment affects all of us on both the positive and negative extremes…emotions might be good for some things but the market…no thanks…
thanks Chris. I could not agree more, at times like these one should be an observer from the sidelines, otherwise it is a gamble.
TA,
If you asked Chris nicely I’ll bet bet he could put together a post with the theme from Andy of Mayberry on for your friends. Have I gone to far this time?!?!
Okay! Gotcha! Thanks!
Chris,
Ever considered writing a book? Your insight is exceptional and the writing is very impactful!
However, you are typically terse. I love it but some other folks I referred your blog to are not able to get it. I am thinking of offering a service – What’s on Chris’ mind!
Thanks again for the wonderful blog!
I’m kind of with contrarian on this one,Chris. These sell-off happen pretty quickly. What do you think about a short position with tight stops?
Contrarian…Great question. First and foremost I believe in portfolio protection, per stepping aside. IMO, Wall street loves to make investors feel they have to dance all the time. I am ok with not dancing to every song they play, every day.
I have scored on defense several times this year, “trade the range.” Right now enough “positives in price action” is taking place that it does not appear from risk management standpoint a place to “place large exposure” per scoring on defense. Rails, Trucking, high yields are all acting ok price wise currently.
If the downside is “abrupt” as you shared and “discomfort” comes back into the market, I will be glad to take positions again.
Hi Chris, so do you actually suggest go short or wait until the down action starts? The action downwards might be abrupt so the chances to time it corectly are slim?