A comment left on the last post was very timely, because I understand exactly what he (generic pronoun) is saying. I was looking over the last few posts and it seemed to me that I sounded a bit bearish. I’m not thrilled that the market is behaving this way, either. Let me try to clear up some of the confusion here.

There are certainly issues that are making new highs or are momentum (momo) plays. I have said many times that daytrading with tight stops seems the best way to trade this market at this time.

We’re looking for leadership in the markets, but so far “leadership” changes on a day to day basis. And with a nervous market, this makes swing trading tricky. I know it can irritate some people that we aren’t giving swing trade picks right now, but please understand that we know there is money to made in this environment by daytrading. We are happy if people are making money, but cannot advocate taking swing positions at this time. And because we aren’t in real-time contact with people, I will not post daytrade possiblities (especially not momo’s), as any questions on trades of this nature would get a (way too late) delayed response.

I will not apologize for advocating taking profits out of this market. Until we see more convincing data to the contrary, we still believe caution is in order.