Does Trading Certain Markets Matter?

Does Trading Certain Markets Matter?

Hello all. I haven't posted in a while but that is about to change. 

In answer to my own title the most simplistic answer I can formulate for you is "YES". For example most currencies at the moment are not in a bear or a bull market but rather in a sideways market of anemic ranges. 

     This is called market noise where you are simply trading against the LP's with little hope of any sort of macro trend forming. Central banks have gone on record saying that volatility is not a good thing in the markets and of course like everything else they are doing their very best to control it. So far it has worked out rather well as the markets have not been doing much of anything. 

      There are those that keep rating on about how the free markets will eventually win out in the end. Well perhaps but how is that measured in time? Does that mean in a few months, a few years or a few decades? What does that mean?

     In my own speculative analysis it means that no one really knows. We need only look at the BOJ to see that this can go on for a very long time. Measured in decades. There are those that would have you believe that central banks are running out of ammunition or ideas. I doubt that very much. The Fed can print money at will so what makes anyone think that they are running out of ammunition? This money printing can go on for a very long time. 

      The only thing I might agree with these sorts of pundits on is once you start down this path, exactly how do you extricate yourself from the process and allow the free markets to reign again. I think this answer is far more complex. I don't think they can. Once the junkie is hooked on the heroine it is dam hard to remove it without causing severe consequences. 

      So what markets should you be trading?

Well stocks for one. US stocks at that. Just continue to buy any dips. It remains a bull market until it is not. So far there is no indication that the bull is even remotely dead. You won't get rich overnight but you will make money. 

      You can try your hand at oil. At least it is volatile enough to cause the markets to gyrate up and down. I would use 60.00 as the top and 25.00 as the bottom. More likely to stay around the $45.00 a barrel range. 

      Is it a bull or a bear in gold? The verdict is still out. Simply have a system in place that takes into account all moves in either direction. Until it break about the 1926 previous high that it made back in 2011 it is NOT in a bull market. So far it has been having problems getting above 1400 an ounce so there is still no indication that the bull market of the past is returning. On every hickup the Gold bulls would have you believe that the Gold bull has returned. I would not be too influenced by their crowing just yet. If deflationary forces win out then Gold will fall. It is that simple. So far deflation and not inflation is winning the game. 

      Soon I am going to have my own platform to trade on. I have been searching a long time for honorability in this casino and I think I have finally found the best solution for the retail fellow. I sincerely mean that without any hype. Stay tuned to my blog. You will want to know what this platform is called so that you can execute your algo strategies and trade without the nonsense and lies you get from every other dealer. 

Have a good day.