Getting Real

It appears that it will take some lessons before the market players can sort through the artificial world created by the FED over the past few years.  I noticed yesterday on CNBC that most of the big timers say this back-off is a real buying opportunity.

So far from a technical indicator sense, most indicators, computer or chart based, other than the Granville indicator that we mentioned a couple of days ago (most traders under 50 who are managing most of the money out there, have probably never heard of it) are still bullish and long.  My guess is that most of the indicators being followed will all signal in a small window.  This will require everyone to try to get out of the market at the same time, kind of like 1987 when the players were all watching the same indicator that day.

I still have my sweatshirt that says “I survived the Crash of 87” and survive it I did with flying colors. I never did see a “I survived the Crash of 2008” sweatshirt offered, probably would not have been many buyers, But our archives clearly show it was good to us.