Mr. Market Gives Me a Beat Down

• Tickerville
• October 6th, 2009

I ran into Mr. Market last night while walking home. I always considered him a happy person but when I said hello, for no apparent reason he popped me in the mouth. Startled, I took a step back and asked him what was the problem, I hadn’t done anything to him. He simply remarked, ‘get over it punk, it’s a new day and your passive attitude will get you nowhere in this life.’

Just as I was about to ask him what the heck he was talking about ‘Baam’ a swift kick to the shin and I hit the pavement like a ton of bricks. Mr. Market just chuckled and said ‘I told you son, you gotta come strong or don’t come at all.’ He walked on with a swagger.

Ya, I know, this didn’t really happen but when I see a 2% move on the heels of a 1% move, repairing just about all of last week’s drop in a mere 12 hours, it sure does feel like I’ve been jabbed in the mouth and kicked in the shins.

The simple truth is that caution and prudence has not served anyone well in this tape over the last several months. Forget economics as that isn’t my beef, what I am talking about is approaching the tape with sound discipline looking for prudent points of entry. Well, you can pretty much take that strategy and throw it out the window because it has been real simple; buy dips, buy them all, and repeat.

While I am trying hard to adapt, this sort of style is definitely not in my wheelhouse so, I will continue to lag the euphoric action, only taking methodical steps forward when and where I see a set up that fits my style. Today isn’t one of those days, so aside from the break in FMCN I just bought, I find myself doing very little.

At some point, I suspect we’ll return to a time when breakouts come from bullish setups, but that day is not today, so let’s move on and work our hardest to adapt to what is working.

FMCN

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