Market On Close, Wednesday 4 December
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Think This Is How It Is? This Isn’t How It Is.
by Alex King, CEO, Cestrian Capital Research, Inc
The job we have as investors and traders is to try to work out which direction the market is pointing in, and then collect the free money that it will drop in our laps if we get that direction correct. And, inevitably, when we are wrong, to protect ourselves from egregious losses and reposition our capital to be pointing in the correct direction. Then collect the next set of free money. And so on.
So when markets are in nutso-mode, like now, there is no point thrashing about the place and saying it’s nutso, overvalued, will end badly etc. Nor is there any point saying “this time it’s different”. Who cares, really? Just try to collect some of that good free money, and try to not get run over by the bull train. Soon enough the market will be manically depressed, and our job then becomes not to say “surely this misery will end soon” or “it can get waaaay worse before it gets better” but is instead to collect the good free money from inverse ETFs like $SH or $PSQ or $SQQQ or $SPXS, all the while getting ready for the misery to end.
All we have to do is trade the market in front of us, not the markets in our heads. The daily notes here for our paying subscribers are intended to provide a clear picture of what is going on in the short, medium, and longer term in equities, bonds, volatility, oil and key sectors. You can use these notes to help guide your own trading and investing.
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Now let’s get to work.