Monday, November 28, 2011

Tim Knight Makes an Excellent Point

I'm starting to understand the bullish mindset, because a little voice in my head has been whining - - "why don't the leaders DO something? They are SUPPOSED to help the markets. What's wrong with them? Why don't they announce something HELPFUL?" (Try to read these words in the grating voice of a five-year old).

This is how bulls think in a bear market, because they want someone Big and Strong to help bail them out. It's somewhat shameful for me to have such thoughts in my head, but my ulterior motive, of course, is that I want another chunk of Big News in order to get prices to shortable levels once more. The reason I bring it up is that I never hear the voice the rest of the time - - it's wholly novel to me - - because bears don't HAVE any government heroes ready to leap to their aid. We are, and always will be, completely self-reliant, trading in opposition to every other entity on the planet.
I have had the same experience that Tim describes. If I wasn't net short right now, I'd be wishing and hoping for bailouts every day. I think that speaks volumes about how weak the bullish case is.

2 comments:

Eric said...

Consider the "bullish case" as simply a considered opinion, even analysis, about which direction the market will go. Then if authorities -- government, central bank, whatever -- can be relied on to intervene, i.e. to prop up prices of 'risk assets', then how is that a 'weak case'?

Price action is the only thing I care about. Meaning I don't want to be bothered with making a case either way.

Eric said...

Yesterday showed once again why it is so dangerous to be short for any length of time.