I refuse to buy into strength, here’s why
Respect for the Process
Whether you’re a rookie or a veteran, when you step into the
batter’s box to face the market ‘heat’, you have to have an approach. You want
to hit your pitch, and as Buffett would say, you don’t HAVE to swing.
I believe in ‘mean reversion’ concerning both price and volatility, with the
best of all possible worlds meaning going long from markedly oversold
conditions. We are not in that world now.
I’m also a believer in the O’Shaughnessy approach articulated in ‘What Works on
Wall Street’, although I still believe that I have a lot to learn to manage the
positions optimally.
The market showed its stuff again today, closing up for the fifth consecutive
day on the SPX and the fourth consecutive day on the Dow. Both had accumulation
volume.
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