Last Tuesday, I wrote, “My guess is this week and next we will see a mostly downward trend …” in oil prices. Last Friday prices jumped, but, as of this week, we are seeing “a mostly downward trend.” Timing the market is difficult, but seeing a general trend is less so.
Speaking of trends, and options, check out Bank Some Cash With This Good Friday Trading Trick. Bob Lang has a tip for you, if you trade options, that is.
- The VIX presents a tough condition though, as it is in the mid-teens. Effectively, premiums have been smashed while the market trend takes shape.
The VIX in the mid-15 range is a fearless market waiting for good news. A general trend is shaping up, and “up” is the operative word. The market might vacillate for a bit, but with ECB’s free-flowing cash program, expect Europe to kick in some economic help soon. That would be good news.
The “Right On” Quote of the Week
- Wall Street is full of Tomb Stones of individuals that were right but could not stay solvent long enough to benefit from their convictions. Hence, follow the trend, for everything else is your foe.
Market wisdom (helloooo … oxymoron) will tell you that going with the trend is better than timing the market. In this case, I agree with the “market wisdom”, and so should you, if your attempts at timing the market have not worked out that is.