Market Precognition

The goal of this blog is to PRE-RECOGNIZE next several moves in the market
I focus on trading the S&P emini futures and T-notes futures.
A loyal reader will begin to understand the themes, memes, and sentiment that leads the market.

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Johnny Hom

Monday, November 01, 2004

MEME: RALLY NO MATTER WHO WINS
This meme is receiving quite a bit of circulation right now. It seems that the wicked rally of the past week has caused everyone to fear shorting into this rally. The idea is that as long as we have a clear victor in the Election, the market will rally.

I think that the risk/reward favors shorting. Even if we have a victor, short some more on the relief rally.

The other meme at work is the "best month of the year" meme. That is to say, be long stocks in November no matter what.

Its scary to short. That's why it will probably pay off.

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