Growling Bear or Pooh Bear? 10/11/11

“It is far better to be wishing you were in the market when you are out than wishing you were out when you were in”

With the market taking off like a rocket over the several days, I was wondering about my post about the growling bear! In fact the bear appears to have been fed some German honey and is sitting back contented like Pooh bear from Winnie the Pooh. The bulls have charged forward albeit on rather low volume today.  

It is far better to have a system and stick to it in a disciplined manner, as long as the system is sound and solid in its foundations, than trade based on recency. I believe in the systems I have and when the signals give a change, I will change. I want to be a flexible reed. I can sway in the direction of the wind without breaking. Living in South Georgia, I have seen too many rigid pine trees break in a harsh winter storm.

Yes, I saw the reversal signal early last week

Yes, I feel bad I did not place some long positions on the S&P to pick up some of the gains from the reversal

No, I could not have expected the gains to have been so much so quick. My technicals are still weak and it is better not to fight the technicals.

But when I get a change in the charts through my trading systems, I will change my posture. For now I remain wishing I was in over the last few days; but glad I have been out over the last couple of months.