Lessons

1. If VIX is under 26, buy the dip. If VIX is over 26, sell the rip.

2. Always trade in the direction of the larger trend. Find the strongest trend in your time period.

3. Nothing as bearish as a failed breakout. Nothing as bullish as a failed break down.

4. Don't worry about the last dollar. Take your money and go to the beach!

5. No more than four positions at a time. Preferably 2-4. Scope out others. Pick the strongest.

6. Buy the strongest; sell (short) the weakest.

7. Nothing is guaranteed. Nothing.

Saturday, February 13, 2010

My Post on Carl Futia's Blog

Christian,
Almost nothing on this site talks about macro analysis. On one occasion, about six months ago, I remember Carl posting about how rising bond rates were bullish. While all the bears saw the worst in rising rates, Carl was correct. All the rest of Carl's posts are based upon his work with Lindsay's cycles, his own box theory, his contrarian analysis of popular media, and his analysis of daily movements in the indices. From what I can see, he is almost a pure technician -- in the discounting of fundamental macro or micro (company balance sheet) analysis.

Carl has posted about a LT bear market in Bonds, which implies that he thinks U.S. debt should be sold. I am selling U.S. debt. He also keeps iterating that interest rates are going up. (Look at the daily guesstimates.)

While I agree with Carl's position on debt, interest rates and equities, I don't think he and I see eye to eye on PMs.

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