Quote from DeepFried:
-Growth is lower but strong at 2.9% GDP,
-Fed appears to have stopped hiking rates and some are saying they'll cut rates next,
-Unemployment and inflation numbers are good,
-We're coming out of a period of extreme, intense pessimism through the summer,
-Oil and gasoline prices are dropping,
-N. Korea and Iran are relatively quiet,
-A lot of people have already positioned shorts for Sept....
We're going higher.
Unless I'm wrong.
Just before I posted this, I was actually bearish and trying to convince myself that the market was too. But then I tried to honestly, without any long/short bias, look at what the market action was telling us and how the market reacted to news items. I felt that it was wishful thinking on my part (and others) that the market would take a hit so we could make a quick buck on the short side.
<b>I'm not posting this to say gee, I'm so smart, I called the market. This is a reminder to myself to always consider the argument for the other side of my position.</b>
It's way too tempting to cling to an opinion because you want to HAVE an opinion so you can make money off of it! If you have no opinion, you can't take a position and make money off of it. So the search begins in earnest for a reason to believe in one market direction or another. And the desire for a correct opinion sometimes leads us to commit to a point of view just because we want to have that opinion that will make us money. The important thing is to always make sure we're adapting our trading to the opinion of the market because there's no way in hell we can make the market adapt to our opinion.
