The levels of market volatility continue to be an incredible force to contend with. It’s almost like viewing a Richter Scale during a large seismic event… Imagine you’ve lived through an earthquake… You rebuild and life goes on. But from that day forward, anytime you hear or feel the slightest tremor, you expect the utmost worst to happen. This “fear” becomes a permanent “Pavlovian” response in your mind. But does that stop you from living your life? Does it drive you to escape? If that were the truth, then places like California and Japan would be uninhabited ghost-towns. People pick up the pieces and rebuild.
Some rebuild better than others, improving on their foundations to protect against future rumbling’s.
Some rebuild quicker than others, utilizing the skill and expertise of industry tradesmen to recover what they once lost.
Right now it’s time to focus on Things That Are Really Important:
Last week was the first week up on many indices like the TSX. What makes this very interesting to me is that the TSX has not enjoyed 2 consecutive weeks up since the index was 13771 back in late August. So if the market is going to come off a bit, it should probably do it very early in the week and then by this Friday, I would think that it stands a very good chance to close higher than the 9270 close on Nov.28th. I would think that if we get 2 consecutive up weeks on all the major indices, that would be very positive given we are going into a very bullish seasonal time and the prospect of automakers getting their bridge loans when they reconvene in Washington this week and with the inauguration set for Jan 20th, the table does seem to be set for an opportunity finally for all of us to make quite a bit of money from the long side for a change. The rally is only 6 days old and that is why I think if they come off for 2 or 3, you have to be all over that.
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