The S&P 500 is down 13% for the month to date in August and it’s not even over. This is a far worse month, 30% worse than October 2008 which was down 10% although we had two back to back 10% down months. People are not talking about that. Gold has gone parabolic. Something is happening here but we don’t’ what it is, but then again maybe we do. It’s the final unwinding. And with it goes the Euro. Talk about too big to fail. I don’t want to sound like I’m panicking. I’m not but then again you should not be fully invested in a market like this until you know what is happening.
Trading the markets is a humbling experience. Anyone that tells you less is lying. As I blogged in an earlier post, you need three things to signal the all clear for longs. Massive insider buying. We are close to that. It’s picked up dramatically. We need takeovers. Noticeably absent to date. You need confidence for that. And finally you need companies stepping up in a big way buying their stock back. Haven’t seen either of the latter two.
My record speaks for itself.