Yesterday was a Decision Day
Days like yesterday don’t come around that often, a day when events provide one a bounce or retracement that goes right to the sweet spot where if you don’t act you will hate yourself for a long time. This doesn’t mean that it was right to act, if we see new stock market highs over the next 30 days I will be wrong, but if we take out this weeks lows over the next 30 days we will have a confirmation of a significant top.
Forty five years of hedging, trading, and investing make me aware that nothing is for sure however. I think if I am wrong on the markets it will be becasue my conviction that the Fed will not act with a QE3 is wrong. There is a lot bluster going on this week with the Fed Governors, especially Dudley, my least favorite, trying to talk the asset markets higher. Time will tell.