The current market is drawing out two strong opinions from the trading and investing group. Some say that it has run up so much, it simply must pullback before further continuation. These are the shorts. They hoping for a short and lower prices before they join the upward leg. The second group is the people who say that market momentum is such that it will continue upwards, no correction necessary.
To confuse the issue more, some expert say this is the bottom, it will go up from here. Other experts say that the market definitely fall lower during the year later on with or without upward move.
One thing is for certain more analysts are joining the upwards move camp with each week.
In the middle of all this where do the normal traders, swing traders stand? It seems necessary to know for the trader, when swing trading, whether the market is headed up or low, so they can trade the right side. It’s easy to tell them, just go with the flow. But if there’s a moderate pullback day such as 100pts down, that trader will lose lot of money betting on the wrong side of the securities. It’s hard to really predict. Unfortunately, many experts have been saying that it’s really hard to determine the direction. They say it could go either way. But the investors and traders are watching the prices rise everyday a little more and good oppurtunities are going.
Hopefully, a clear direction will emerge. At the time of this writing, I’m slightly bullish. In other words, I have a bullish position on one stock. I’m not against taking bearish position on other stocks at the same time. Even when the stock is big and moves with the indexes.