Sunday, August 17, 2014

Even A Permabear Doomster Can Be Bullish About the Short Term Outlook for U.S Stocks - 8/17/14 and 8/24/14

As the title of this blog indicates, I am a doom and gloomer in regard to the future we are leaving for our grandchildren to inherit. However, in regard to the U.S. stock market, over the next couple of days, I am a raging bull. The reversal in the market on Friday after the fake news story about Ukraine attacking a Russian convoy has me convinced that the U.S stock market will be going higher over the next couple of days.

So if I am right, it is appropriate for active traders to get long the U.S. stock market. However, it is so unusual for me to be bullish, that this post may serve as a contrary indicator. 

If the stock market is indeed headed up on Monday and Tuesday, it still makes sense to have stops in place. There is so much turmoil in the world that bad news could derail the bulls. But at least for now, the bulls seems to be in control of the market.

8/22/14 Update

The fact that 1) the news out of Ukraine today, and 2) Janet Yellen was not as dovish as expected during her presentation at Jackson Hole, did not lead to a big down day, makes me bullish for next week as well. "Be long or be wrong" at least in the short term. The magnetic pull of round numbers should lead to a good run to 2000 for the S & P. However, no change in my long term permabull doomster stance., although after being bullish two weeks in a row, I may have to temporarily let my membership in the the permabull club lapse.

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