Wednesday, April 1, 2009

>Global Trading Strategy (FIRST GLOBAL)

Into the Rally of Death, rode the 600

The Short Story.....

If you have seen little babies at work, here’s how they express their dislike for something: they simply turn their heads away, rather than bawl or make a face, polite little things that they are. It’s almost as if by doing so, they’ll have made the problem go away.

That’s precisely what we have been doing last three days with The First Global Systems Family. For it’s been so joyous…we have all been buying up all the beaten-up stuff across the world, and have been making 20-40% for the mere act of pressing a button. Heck, we have even made money in Russia.

But now The First Global Systems Family has been boring its eyes into our backs, even as we have avoided looking. The First Global Systems Family is telling us bad things about the market, so why on earth should we listen? We don’t want to hear distasteful things about this cute little global casino governments collectively have given us.

But we have also learnt, through hard lessons, that we shouldn’t ignore The First Global Systems Family’s tirades against such mini-bull markets. Remember our dictum: we never mess with the mob.

What The First Global Systems Family is saying that it’s beginning to like this rally less and less. Quantitatively, this rally is worsening in quality (make what you will of that). Globally, the rally is becoming deceptive. It’s beginning to resemble one of the poorest bear market rallies we have seen for a while now, in terms of the level of deceit.

All indicators on The First Global Systems Family’s dashboard are beginning to flash Red.

But aren’t we supposed to be in a hot new bull market?

Not if you believe The Family.

In fact, The Family is calling it The Rally of Death. Corny, but gets the message across effectively.

Now, calling the end to anything bullish is always so, so scary. The world will forgive you if you uttered the Buy word too soon. But utter the Sell word too soon, and not even your Family will forgive you.