"Markets like this can wipe you out if you aren't careful" - http://goldavalanche.blogspot.ca/2012/12/dec-15th-2012-next-move-in-dow-is.html
See what I mean?
The question now is whether this will be a total wipe out, or just a blip in a larger rally? It's still anyone's guess. I say this because of our longer-term thesis that the transportation index is currently setting the macro-scale stage, while the Dow is setting the intermediate state.
That means the Dow's movement into negative territory today is a negative short-term sign. But do you short the market? I wouldn't yet, because I'm not 100% convinced a bear market has enough drive. The transportation index is flirting with some significant points on the path to all-time highs, so my stance is that there may be some profits left in the broad indexes, but I am not buying at the time - except some bonds (as crazy as that sounds). If the transportation index hits those all-time highs, but the dow fails to confirm - that would be really, really nasty for the buy-and-hold crowd (aka long-term investors). Thus, continue to exercise CAUTION and PATIENCE if you are the buy-and-hold type.
To re-iterate, I do not like it that the transportation index is so close to all time highs while the Dow is losing steam. The bottom could literally fall out of the bucket with this set-up. So - waiting continues for long-term folks, and insane ticker watching continues for day traders.
Personally, I like to relax ... but if you like the thrill of trading, Scott Pluschau and Toby Connor are your men.
