Here’s Where Your Focus Should Be in This Rally

Don’t be fooled by this post Thanksgiving rally. The shorts have had a party lately, and they are notoriously hair-triggered. So when their profits are threatened, they rush  to cover their shorts.

Back when I was a kid hanging out in the customers’ gallery at Walston and Company’s downtown Philly office, on bear market rally days like this, the old traders were fond of saying this little ditty. “He who sells what isn’t his’n, must buy it back or go to prison.”

I heard that a lot! It was right up there with “Don’t fight the Fed,” and “The trend is your friend.”

The trick then was figuring out what the Fed wanted. They didn’t tell us back in those days. Policy was all a big secret. We needed guys like Dr. Doom, Henry Kaufman, then Wall Street’s top bond strategist, to read the money supply tea leaves every week to tell us what the Fed was doing. We’d all gather around the news ticker machine late every Thursday afternoon to see the money supply data, breathlessly awaiting Dr. Kaufman’s pronouncements.

Today, we have no such problem.  Because of that, the message from Monday’s rally isn’t Booyah! Here’s the message.

Click here to learn what you need to profit from these violent days in the market.


One Look At This Simple Indicator Reminds Us That We Still Must Be Careful

I want to thank you for reading these pages. It is my honor to have the privilege of writing my thoughts about the markets for you. I am thankful that hundreds of thousands of you care enough about your investments to have an interest in those thoughts from time to time. I know that my message has not been an easy one to digest, certainly not as easy as that tiny plate of turkey, stuffing, and cranberry sauce you had on Thursday afternoon! 

Meanwhile, the stock market has finally begun to confirm what macro liquidity analysis has been telling us for many months. You MUST preserve your capital! But while you’re doing that, there are always ways to profit from the markets regardless of their direction,

Read on to see why for now and the foreseeable future, you must preserve your capital. And I’ll also give you a suggestion on how you can still profit. Click here to get the whole story!