First of all, I need to apologize for naming the stock market report series incorrectly by their weeks. What I mean is that today’s stock market report is week 34. The previous three reports were incorrectly labelled as weeks 26, 27 and 28 when they should have been 31, 32 and 33 respectively.
Nevermind all sorted now.
So another week of no trading for me (isn’t life stressful?). This is why I enjoy the way I trade because I simply do not have to trade when my analysis concludes that there are no good opportunities in the markets right now according to my trading strategy.
This is the opposite to a lot of fundamental investors who are no doubt buying up lots of shares due to their low valuations. I tried trading like that a few times but I could not stand holding onto losing positions for weeks and months when I saw that other shares were rising in value. I wanted to trade shares only when they were rising in value and close trades quickly that were losing me money.
That said, you can still lose money trading the way that I trade but you have to be willing to cut your losses fast and hang onto your winning trades longer.
Stock Markets This Week
All eyes were again on the Federal Reserve Chairman Ben Bernake this week to provide direction for the US economy. What we received was a downgrading of economic growth for the US and a ruling out of a further round of Quantative Easing, at least for now.
I liked the fact that Bernanke called on US politicians to do more to put the US budget on a sustainable path and suggesting that Washington explore ways to make the budget process less contentious. Will they listen? Recent history does not fill me with confidence and perhaps this is the crux of the matter: worldwide financial markets have lost faith in their politicians to resolve the economic crises.
This continues to be the macro economic theme both here and in the US.
The new head of the International Monetary Fund Christine Lagarde, has warned that the global economy is in a ‘dangerous phase’ and the recovery as fragile as it is, is in danger of becomming derailed. Lagarde also called for the recapitalisation of European banks. She does not suggest who should foot the bill for such a task but in the end, it will fall to taxpayers which is why politicians do not like the idea. I don’t know about you but I’m still smarting from bailing out the banks.
None to report – 100% cash
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Any trades listed above are closed trades as I do not make public open positions.
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