Wednesday, July 9, 2014

It's simple mathmatics...

We love the economy, we love the recovery, we love the future, and everything is awesome. We love buying just because everyone else is......

However- Our financial calculators on annualized rates of return and projected current rates at the current pace has them going bonkers! How many standard deviations are we outside normal ranges since November 2011. We are not going to wait for Wall Street to plug that into their "asset allocation and risk" trading programs. Call us crazy,Call us pessimists, but don't call us "Illogical".

In the end -we estimate 70% of trading volume on the exchanges is due to computer programs. The last time we checked, computers use logic, not emotion. We have the advantage of intuition-we are using it now.

Alert! The Russell 2000 is up 100% since Novemer 2011

Yep. You could have bought the IWM ETF for $60 in November 2011. It broke $120 a few days ago.

You know the drill;)

Of course we are short.

Alert! The S&P500 is up about 82% since November 2011

Yep. You could have bought the SPY ETF for $110 in November 2011. It hit $198 a few days ago. Do the math.

Conclusion: We are Short or We are sellers. Definitely not buyers!! Good luck lemmings;)

It's just basic math people.