It's Different This Time...

There are so many negative reports about what's going on in the world, but the market seems to shrug it off like everything is hunky-dory.

I'm not so sure yet, as many of our longer-term indicators continue to resonate in a negative manner. That is not to say they can't or won't change eventually, but rather they serve as a reminder that we are not out of the woods yet.

Europe continues to be a serious financial and social problem for the world. How are these countries and the citizens of those countries going to deal with having things taken away from them? Human nature is human nature, and I seriously doubt whether all these proposed austerity plans are going to be accepted with open arms by anybody.

So what is a trader to do? One of the easiest ways, and these have not been easy markets, is to follow the market action. Today could be a good example of doing just that.

While the intermediate term trends are positive for some of these markets, they are in conflict with the longer-term trends that are still negative. Until we see those indicators in unison, we have little enthusiasm for chasing the long side of the equity index markets at the moment.