2010
07.27

With Consumer Confidence down once again to the lows of last February, and coming off a one week rally party from the bulls…  Will the market continue to feel optimistic?  The answer would more than likely be a little less than confident yes.  With being in the month of August many hedge and other fund managers are searching hard for their next moves going into the end of the year.  Many funds are attempting to pour money into the markets for the long side betting that we will have a bullish close into the end of the year.

All the optimism is nice, but it seems that many have started to become blind to the many headlines and warning signs that they see daily everyday.  We have Consumer Confidence down to the lows of February, a slow down in Home Sales, Greece and a handful of other European countries in serious debt troubles, which many of them are due to default coming this Fall season.  These signs or events don’t seem to point to bullish sunshine days in the near future.  As a trader, money can be made in any market up or down, regardless, so enjoying the temporary optimistic bliss can be just as sweet as enjoyment of profits from a pessimistic downturns.  So one should enjoy the optimistic days and profit from them, but don’t get caught up so far in a temporary rally party that you become blind to the hidden warning signs all around the party.

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Until next time,
www.thepredatorsden.com
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