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Where is this market going?

Author: Varun Kanotra (info)
Website: http://www.targetsix.com/
Posted: January 9th, 2007 at 6:45 pm EST
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Honestly, I don’t know. And really honestly, I don’t care. If you ask me, you shouldn’t care either. I’ll tell you why. The smart traders never make the foolish mistake of making market predictions. We all know that the markets will do whatever they want to do. So why bother. Let’s have the market give us a better sense of direction hence making it easier to trade, but I’d be a fool to put a trade by assuming the direction. Instead, why not focus that energy in writing your rules for how will you react if it goes in either direction. I hope I’ve hit that point home for everyone.

Looking at the current market condition, I don’t know which way its going to go. It seems to be surprising me every day. However, I am of least concern because majority of my portfolio has vertical spread trades on the SPX. And they are over 100 points away in either direction so it doesn’t really matter where the market goes.

If you would like to learn more about vertical spreads, I suggest you visit investopedia.com

Here are some charts:

I need more direction to really say any more.

The DOW bounced off its 30 day moving avg. but did not do much today. We could really go in either direction. I hate to be so unclear but I really don’t know where this market is going (hence the title).

I do like what google is doing. Forming a head and shoulders :-)

AAPL shot up like crazy driven by the MacWorld conference.

That’s it for now. Thanks.

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