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Waiting For Waves
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Korea is still awesome – even the weather got a lot warmer in the past few days. I spent the weekend in the Sorak mountains with friends which was an amazing experience. But quite frankly, even a one way trip to Pyongyang (i.e. North Korea) would have been better than watching this miserable tape. As you remember I expected nothing but churn ahead of the midterm elections but this is ridiculous. My condolences to anyone forced to watch this paint dry – I recommend you pick up a new language instead. On that topic – my Hongul is getting pretty good actually – at least now I can read the signs, which is a big step forward toward learning Korean.

I am pretty jazzed that I picked this period for my trip as I probably would not be able to offer much in terms of insights anyway. The entire financial market (i.e. equities, bonds, currencies, commodities, oil, etc.) appears to be locked in a sideways pattern now and unless you’re selling theta there’s really not much to do. Everyone is waiting for waves and although a tsunami may hit early next year I have doubts that we see anything more than a quick correction. This is a good time for traders to sit back and wait for a push outside the current equilibrium. What we need is a harbinger of future tape to come – so if we get a fast push up it may mean that momentum is again swinging toward the long side. If we see a quick downside correction this week I’m sure that it will be bought and a floor be painted – BUT – it may be a first sign of things to come early next year. So, getting positioned on the next ramp up after that may be good medicine.

So, don’t try to force things – if it’s a ‘do nothing market’ you should be a ‘do nothing trader’ – pretty basic right? But sideways tape often traps people into enforcing their own ‘opinions’ on where things may push next. The bulls think it’s a break before a push higher and bears think that the current uptrend is running out of momentum. Maybe – but being early either way can be very costly – a lesson many bears have learned the hard way on the way up since March 2009.

Before I go I’d like to let everyone know that my trip has been extended by two more days so I probably won’t be posting anything intelligent until Friday morning. And I’ll probably be jet-lagged like hell – so I actually hope the market keeps waiting for waves until I’m back 😉

Keep it frosty!

Cheers,

Mole


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.