Time To Take Defensive Positions On Stocks

Time To Take Defensive Positions On Stocks

$DIA, $SPY, $QQQ, $VXX

Whether participants want to realize it or not, they should always be on the defensive when playing the stock market.

Some participants have situational awareness and are making investment adjustments to limit their potential loses to only a few points. They are the ones who will be able to stay in the game to score points later on. Being on the defensive is integrated into their strategy.

Most participants are playing the investment game without making an adjustment in the strategies, tactics, or the information they use.

This is remarkable since it is not as if what is happening in the markets is hidden.

The bond markets are a disaster. When the government controls interest rates at Zero+, they are not saving the financial system. They are protecting their own interests and the people who pay huge amounts of campaign contributions to keep them in their jobs.

The stock markets are awful. There are no fundamentals that support the valuations as reflected in DJIA or the S&P or any of the other indexes regularly cited by the financial pundits, analysts, talking heads, economists, or Fed Chairman Janet Yellen.  These people are not telling participants the truth. Bad news is not good news.

Participants are kidding themselves when they think that they can get out of the market when things start turning due South.

The brokerages, banks, and money managers who are the market makers for the government bonds, are also the same people rigging LIBOR, the Fx, Gold, Silver, Copper, Crude Oil, mergers & acquisitions, they are the professionals inside the action..

The markets are not set up protect the civilian investors.

Every time there is a crash, the Congress passes more legislation and calls for more regulation to protect the civilian investors. But most players on the inside do not lose any money. To the contrary, they make a lot more faster going South then plodding North

The professionals are protected, because they know how to protect themselves.

Civilian participants are on the outside, they bring the money to the game. The rules will not change. But, there is no reason not to win in the Wall Street investment game if you think defensive.

But, to win retail participants have to start playing defense.

Monday at the close: DJIA +47.30 at 17131.79, NAS 100 +8.17 at 4838.64, S&P 500 +2.54 at 2017.43

Volume: Columbus Day trade was light with about 700-M/shares changing hands on the NYSE

• NAS 100 +2.2% YTD
• S&P 500 -2.0% YTD
• DJIA -3.9% YTD
• Russell 2000 -3.4% YTD

Remember,  it is your money and your responsibility, the tools are there for winners to take up.

Stay tuned…

HeffX-LTN

Paul Ebeling

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