Friday, December 24, 2010

12/12 What, Me Worry?

Written on December 12, 2010

http://www.liquidmatrix.org/blog/wp-content/uploads/2008/08/whatmeworry.jpg

Greetings-

All kidding aside, we have reached another point of peril this week. Many individual investors are very bullish-positive (53.0%) and hardly any are bearish-negative (22.6%)

And they have been selling options because very few believe they need insurance for their portfolios of stocks.

http://www.marketwatch.com/charts/int-adv.chart?symb=US:VIX&sid=1704273&time=10&startdate=&enddate=&freq=1&comp=&compidx=aaaaa~0&uf=7168&ma=1&maval=50&type=2&size=1&lf=1&lf2=4&lf3=0&style=1013&mocktick=1&rand=59398829

It is likely no different this time than the last and there is a sharp correction coming. Head to the sidelines; cash out your winnings and wait for a dip.

Praemonitus, praemunitus

Burnt children dread the fire…

A word to the wise is sufficient…

As a dog returns to his vomit so a fool repeats his folly.

(my personal favorite from King Solomon’s Proverbs)

Sell high, to preserve the right to buy low,

Leon

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