When will it end?
    Reading the Wall Street Journal this morning, I stumbled over an interesting fact. In 10 trading days this year, the DJIA has been positive 5 times and negative 5 times. On the surface, not bad. However, of the 5 down days, all where down over 200 points. Ugly indeed. With Asia tumbling, Europe lower and the futures in negative territory, do we have a large drop ahead of us? Time will tell.
    In my opinion, this has been a difficult market to navigate. I am 35% long with a heavy commodity exposure. I have been long deep value stocks which have performed well and short momentum names that continue to tumble. All in, a nice positioning that has led to fantastic results in the first 2 weeks of the year. The part of my strategy that has been absent is day trading to generate a consistent P&L. This market has become treacherous to trade. We have not yet reached a fair value level in any of the indices. At the same time, we have dropped so quickly and reached oversold levels that going short is risky. Any type of good news would drive use higher and wipe out short sellers. At the same time, I cannot make an argument to go long as the market seems set on diving lower. If you cannot long or short the market, what to do? For me, conserve capital and rely upon your core portfolio positions to outperform. When things stabilize, look for high opportunity, low risk trades and make the most of them.
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