I usually take the contrarian view unless I'm following a
mechanical system like the MensaMonkey.
Whenever I see multiple articles spewing the same dung, or financial
analyst molasses heads start jumping on the bandwagon, that's when I take my
exit and go the other way.
This year has been very profitable for those that go with
the flow (as in sewage flow). Look at the chart below. It looks so simple in retrospect. "Go Away in May" and "Stay Out in October, It's a Really
Scary Month" headlines have put you in the drivers seat if you rode the
market all the way down to the 200-day moving average in both cases.
This contrarian monkey hasn't given up on
October yet .
There is still one week to go, right?
I'm just waiting for the news to come out that
December is a
great month to buy, and I'll jump in and bump into the 200-day moving
average too.
At this point in time, I'm
not sure if that line will represent support or resistance.