Despite Friday’s early morning commodity led reversal of 10SP intraday handles to close at SP1397, this weekend will likely still be dominated by, ‘Worst week for Stocks’ type headlines.
This on the back of each major zones own headline noise: US...‘5 days of housing data adds to global growth concerns’, ‘China demand fears weigh on recovery’(Shang' off >2%), ‘Europe slides 4 days on sovereign concerns as yields rise’ (Europe off >3%). You’d think the, ‘Hunger Games’ hoopla was stock market related this weekend until you check previous week’s closing prices and see only a 5 handle drop since. Imagine just the basic Ma & Pa investor going through the deluge of information and data to make sense of anything in the marketplace. At times, it's easy for experienced traders to get caught up in the market noise, especially on quiet days where you find yourself surfing to a place like Zerohedge or actually finding yourself paying attention to what the latest talking head is saying on Financial TV. Luckily, ‘I’ have this forum.
Part of the exercise in writing the Journals is a form of trading discipline. For oneself and hopefully for readers, it's importance is not to lose sight of your current market premise/stategy. That is the point behind bolding past Journal excerpts into current ones is to embed the strategy you’ve been on and not losing sight of it. It would be too time consuming to read past days and weeks Journals, so the effort is to regurgitate the past essentials in a cut and paste form. This week was a plethora of what could be construed as real negatives: disappointing PMI’s, TSY ‘s rise, negative earning season projections, but not deviating from the premise of a week ago of this being month/Q end on the heels of substantial gains, plus approaching earnings and the (early March) belief that equities will not necessarily follow any commodity pullback/correction muted out all the negativity. The ‘window dressing’ premise goes into next week and will likely be picked up as a theme now, but being a week ahead here allowed this week to be ‘comical’ you could say again as recent breakouts in many indicies held up.
Yes, the Global data last week raises concerns and could be foreshadowing things, but for now it’s just a shadow over the market that can just as easily fall away. Not to belittle it, but why fret over it at this juncture.