Yes, the headline is true, but knowing when it is going to crash is more important than if it is going to crash. We have seen four crashes in the last 16 years, so expecting it not to crash would just be silly.
I have seen that headline over and over for the last four years. Some were quick to jump on the “I told you so” crash of 2010 or the big drop in 2011, but each huge drop was quickly bid back to its former high position. Most of these “crash callers” are looking for a 2008-2009 type move, so I have a hard time saying they were correct, even though we did have a crash of a sort.
Trading a crash is a losing game. Forget about why we are here or whether the S&P 500 Index (SPX) should be at these levels. They are and price is always right. One could come up with 1,000 reasons why we shouldn’t be at these levels and be 100% correct about their reasons, but they will also be 100% broke, if they are shorting and holding those positions-because of their beliefs.
We are seeing huge swings in the markets. Why should one care about the “bigger picture” or whether or not we should or shouldn’t be at these levels. Isn’t your goal to make money?
Investor sentiment was at extremes in September and Woody Dorsey predicted the turn on September 18th – one month before it happened. And then predicted on September 23rd the exact low date to hit in the October 15th-ish area.
Investors are creatures of habit and trend durations will repeat. Understanding and accepting that will make you more money trading these big swings, instead of trading your reasons why it shouldn’t be here.
Do you want to know when the next turn date is coming? Click here.
