Follow The Money

Capital does not seek direction from "headline noise”. The movement of smart money, despite what is implied by headline analysis, is deliberate and controlled. It tends to move against headline noise and with the secular trend. In other words, smart money methodically buys the dips and sells the spikes in secular bull markets. As I said many times before, follow the money and ignore the rest. Discipline waits for setups at the right price, while everyone else chases. This methodology also applies to gold and silver.

SP 500 And Equity Diffusion Index (DI)


This is usually done at the expense of retail money.

Headline: Stocks plunge on economic news, oil price swings

Weak economic news from China, the U.S. and Spain combined with a slump in oil companies sent stocks sharply lower Thursday.

Investors were jarred when China reported a surprise trade deficit in February. China's exports fell as businesses closed for the weeklong Lunar New Year holiday, but imports of higher-priced oil and other goods jumped, widening the country's deficit to $7.3 billion.

Meanwhile Moody's downgraded Spain's debt, re-igniting fears about the European debt crisis. The downgrade also sent the dollar higher against the euro.

Source: finance.yahoo.com