Investors are always sitting in their hands, waiting for something definitive to happen, but uncertainty & event risk are everpresent. Once something happens–that bit of realized certainty investors waited for–it’s too late to act. Once something happens investors don’t want to chase, they don’t want to lag behind, so they’re stuck waiting for the next event horizon.
–Romeo Fayette, 05/23/2012
That’s why I make 65% of my money only 5% of the time. I am swing trader. Despite the technicals, despite the fundamentals, I have the composure to buy when there’s nobody buying and nobody left to sell, because:
I’ve grown so familiar with these problems that I can clearly see how to fix them. After all, the fix is the risk to my portfolio [as it’s positioned pro-cyclically].
SPX now <1300 again intraday. Buying a small position in Utilities (XLU), according to my plan. Consumer Staples (XLP), Technology (XLK), then potentially MLPs (AMLP) and Pharmaceuticals (XPH) to follow as we reach 1254 final support. It will be a bumpy ride from here on. Commercial traders will be full-tilt short one day, then scramble to cover the next. Hold on…