Risk on?

This bear got gored by the bull. Well, it wasn't that bad. Nearly a breakeven trade, which I actually consider a good trade. But the markets in general still have an upward bias. It is true that a bear market starts long before the averages turn down, but the time to be a bear is NOT now.

So I closed out short positions yesterday. Somehow I knew it wasn't going to be the top a couple of days ago but had to make sure of the trade. Which brings up another subject.

Writing this blog is another exercise in trying to sense my emotions and moderate my emotions. I find myself making predictions and then wanting to cling to those predictions in my trading. I usually get out of my trades before I admit it on this blog, as I have said before, but the fact remains that I tend to get "invested" in the things I say here because I want to be "right" to anyone who may be reading this. My advantage in the markets is my "tape reading" ability. I saw some selling happening in various stocks and that selling in the context of where the market in general was lead to the impression that a correction was due and probable. Well, there was a couple down days but the market has recovered to the highs. The point of tape reading is to make money by reading the market so now is not the time to be short.
So, thence the advice: "Neither a tipgiver nor a tiptaker be!"

Bought some GLD at $162 a few days ago. Almost the exact bottom of the move. So Far. Historically that day looked the same as many of the intermediate bottoms in this security. Chart below.

Bought some DE, MCP, and UNG yesterday. We'll see how these work out from here. Still have some TBT.....

Control your risk. Limit losses to a small percent and let your profitable trades or investments run.....
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