Trade The Rally, Don’t Fade The Rally

The rhetoric about investors not making a dime in the markets or the lost decade is starting to get old, as the S&P flirts with 1400. Bill Gross and Roubini keep making their rounds about how the equity markets are dead, which is not very constructive for those with long-term macro equity plans. Roubini was right in 2007, but he’s been ranting and bearish ever since the S&P hit 666 and has been all the way up to 1400–can’t make much money ranting! The S&P has been in a 10 year+ range absorbing the major moves that have taken place in the previous decades (DIGESTION). Even though we’ve crossed 1250 50 times or so in the last decade, investors who had a monthly investment long-term plan (in S&P funds) are going do just fine vs. sitting in cash. With a little education and effort, perhaps you even caught some stocks that have returned 500% like and Apple (AAPL), or traded intermediate trends for cash flow!

Anyway, futures are up a bit, as markets could use a little time to let the 8 and 21 day moving averages catch up. Some work above 1388-1390 would be constructive, but a pull back to the 8 day moving average, which stands around 1376-1380, would not even change the bullish complexion. Most guys out there are just looking to fade the rally vs. trade the rally; I wonder how that’s been working.

Disclosure: Scott Redler is long: AAPL, GS, FB, ZNGA, GMCR short: SPY

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

Visit: T3Live

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