Tuesday, November 26, 2013

The Daily Note - Amazing Disconnect

*****I am amazed about the disconnect this market has with reality or as I call it, actuality. We are daily hitting new highs yet the consumer confidence misses consensus by a large margin. Mid 2000's that miss would have dropped the  markets by a large margin, and as we witnessed this morning we did drop initially, yet it was considered to be good for the markets, like all bad news has been  these past 4 years, especially this one.

We can continue to compare the past with the present as to how the markets reacted in the mid 2000s to good news vs. bad, but what's the use in that? Well, we can learn from it by noticing that all those dips and slides eventually became gains anyway; which means that the majority saw opportunity or what I call possibility. So here we are, in the actuality and we can envy those optimist or we can learn from them; they did not get here because of a special crystal ball, but by knowing that the markets in the long term go up and not down. They had to have patience and also had to disregard the reality of a recession, and burst of the housing bubble and have infinite great timing. Do you believe that or will you see that they too have an amazing disconnect from reality.

The truth is that in the mid 2000's the market had an amazing disconnect from actuality also. Low unemployment was bad news because the media said so, consumer confidence had to be beaten each time or markets plummeted and when the manufacturing index was not gaining by much higher margin than we currently accept as great; also, the housing market and starts were not fast enough for some. Get the picture?

We can always believe the numbers and what others say currently or we can stay a bit disconnected from the hype and look beyond to see the possibilities. We have no worries, the debt is not rising and it will not hit us smack in the face anytime soon because the Fed. will protect us from that reality. Right? Besides,  hopefully the "boomers" will die soon enough leaving their offspring rich to take care of it all for their children, and so on.  As you can see, if we continue seeing actuality, we'll go terrible depressed or go insane, so perhaps staying a bit disconnected from actuality is good and maybe even amazing for us.

A Charming Spell by Splashdown on Grooveshark

Happy Trading, Living and Dancing

The Daily Pick - Current Swing Trader Plays still in Progress
$BA latest entry 106.70  Sep 04
$GS latest entry 163.5    Nov 08
$BIIB  latest entry 236   Nov 11
$GILD latest entry 70.50 Nov 18
$OPEN latest entry 83.00 Nov 20 (short)
©DayTrading with Anni 2007 - 2013 All Rights Reserved

No comments: