The markets have been challenging lately, to put it mildly. With the broad averages cavorting near record highs, investors are almost as nervous as they were when stocks plummeted in May and then again in late July/early August. The technical tea leaves have seemed tougher than usual to read, let alone exploit. Rick’s Picks frequently advises a tactic called a ‘mechanical’ entry that is designed to initiate trades at times when one might ordinarily be too scared to pull the trigger. Gold futures and the E-mini S&Ps both triggered ‘mechanical’ buy signals recently that were properly scary. The trouble is, they were too scary even for a trade that is supposed to be scary. Both vehicles ultimately turned up from lows that were within a hair of stopping out bulls. This is how Mr. Market thwarts and deceives even those who ‘know’ what he’s up to. Gut feelings at times like this are no better than flipping a coin. The good news is that no one forces us to trade.
