Time to Trade Like It’s 1994?

With the last day of the month today and much of the money spent (both from cash on the sidelines and with the heavy short covering), a pullback is more than due. News from Europe will again take center stage (Italy is this morning’s sabre-rattling de jour), and should things escalate, a larger pullback will occur. 

But shorter-term there is a battle with many major Country Fund ETFs again nearing their 200-day and further reinforcing the fact that much of 2011 has seen a market that’s whipsawed itself back and forth. This is obviously frustrating for many investment and trading styles. 

As I mentioned in a previous Battle Plan, this is very much like 1994 playing itself out again, with few if any styles able to gain traction. Let’s hope the next few years look the same as the years following 1994, which saw the market break out and sustain a tremendous six-year run.