Monday Feelings

Key points:
1) The market can remain irrational longer than you can remain solvent.

2) No matter how high it goes, it can always go higher. No matter how low it goes, it can always go lower (look at a 10-year chart of MSTR)

3) Stick to your rules. We are trading, we are not buying Certificates of Deposit, so it requires a bit more emotional fortitude.

4)Diversify. As the charts become more bullish, consider some long trades or covered calls as money flows in force back into market seemingly in 4th Q.

5)Watch / listen to the Fed – if Bernanke does cut rates like he alluded to in his talk last week, we could in for a nice ride next year.

Stay Disciplined