Stay on the sidelines or stay short

Good evening. I chose to stay on the sidelines and observe the market today watching the action from the bench. Everything is going as I had foreseen, and the market is still wobbling around on its edge, so stay out of your long positions.
It was interesting the other day how the dow suddenly jumped 200 points as some trading computers made the incorrect call that it was time to go long. That almost seemed like it was a bunch of flashtrading systems. They may want to take a look at that because the market is not going to be going up soon.

Traders are bracing for it

The weekly QQQ chart shows a very big underlying crack forming in the foundation of the cubes, and the daily is showing the QQQ teetering around right about to drop. I have also set up a series of puts for the QQQ.
The first main drop that occurs I am going to let go of my Feb puts and I will hold on to my March QQQ puts waiting for yet more of a drop. Take a look at marketwatch.com or some other big trading sites, people know it is coming.

A drop is really no problem as long as you know its coming and you shore up your investments accordingly. Kind of like knowing a hurricane is on its way a few days out so you put up the storm bracing, nail up wood over the windows. and raise up everything in the basement. There is nothing worse than waking up in the morning, turning on the news and seeing the stockmarket down 400 points as the lead story on the news, then running over to your computer and seeing your portfolio down 12%. Weaker men would sell thier stocks at a loss fearing further loss. That by the way is how you lose money in the stockmarket. Most people buy a stock when it is hot in the news when the stock is already way overpriced. Then when the stock deflates, they lose money and freak out and sell it. That is how people buy high and sell low, the exact opposite thing that makes you wealthy. Just dealing with Fear and Greed and using a logical stock trading contrarian system will eliminate these constant losses, and instead you will be making money long term in the market. Like me.

More to come,
Mark