Respect Paul Tudor Jones

The market did little yesterday and the 2014 sideways market continues.

One of the asset managers I greatly respect is Paul Tudor Jones. His 25+ year performance speaks for itself. Yesterday the Wall Street Journal reported the following:

Paul Tudor Jones, a billionaire veteran of the industry and founder of Tudor Investment Corp., this week called the trading environment “as difficult as I’ve ever seen in my career.”  

When someone of his stature states something of this magnitude, it helps put in perspective the current market condition. Eventually though markets work themselves out. The hype coming into the year was too high and this sideways movement is consolidation, along with major funds repositioning themselves.

Coming into today the market is short-term neutral. Until shown otherwise, as long as SPY stays above the 200 day, the path of least resistance will be higher. On a very short-term basis, the heightened intra-day volatility that we’re seeing is a gift to day traders.

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