Patience
11:38 UTC 01 Dec 2009 
3 Comments
Tops and bottoms in markets are an exciting event that consistently lure investors into pulling the trigger too early. No one is immune to the temptations and commotion surrounding these events. This is especially true this day and age with all of the potential skeletons in the closets of banks that they are holding closed for the time being. Jumpiness is never a good thing when it comes to trading.
As a rule of thumb whenever I get that energy from deep inside that overcomes my mind with a sense of urgency in making a trade I walk away from the computer. You know that feeling the one where the market is rallying hard with green spikes pushing upward and shows no end in sight and you have to jump in ASAP!! This almost always results in buyers remorse as soon as you click that emotional trade in. Below is a chart from the top in 2007 that illustrates an order that could repeat itself where housing tops off first and the patience needed to wait for the market to follow suit.
BTW we moved the NHF portfolio over to short this morning on the rally if you didnt see our comment on the weekly #3 post… We will see how this rotation turns out .. it may end up that we needed to exercise some patience of our own!! ha
Looks like the market may finally realize that good jobs numbers is not good for this market in that the dollar will rally
Looks like XLF has already started the rolling over process lately.