Quit Calling Bottoms

Larry Kudlow will be calling bottoms for longer than eternity itself. Or until there are no mustard seeds left to plant. When these parabolic death curves (from the picture above) stop, then it might be time to really deploy those cash reserves (or whatever is left). Personally, I will continue to remain mostly in cash while trading these death curves as mentioned above.

I have a core, small diversified position of longs that I was planning to add to over the past and future months, but upon further consideration, I see no reason to be terrified of missing out on a 20% push higher. After all, if one were to commit to add to the positions say every month, the core holdings might be down say 30% (a tad generous for some and a tad harsh for others) and with that 20% push upward, would still be down about 16%. My succinct take on preserving capital, especially if I cannot see this as the real bottom.

At any rate, we keep creating lower lows and until the market can construct some kind of base, it is just plain guesswork to assume anything, up or down, at all. As an investor in this environment, maintain discipline and manage your risk. That means keep stops in place and listen to the message of the market, not the talking heads and certainly not your conscience.

Quadruple witching hour on Friday. That's four witches! Should make for an interesting end of the week.

'Unfortunately' I will be going to from Thursday through Saturday and will not be able to partake.

An aside: I really felt bad for Cramer as he was getting grilled on the Daily Show. Terrifyingly awkward. The comments Cramer made on the interview excerpts shown from a couple years ago were pretty damning from a general public perspective, but wow, I have not seen anything that skewered since my Labor Day BBQ.