On the Sidelines

by Larry Levin

Don't worry says the media: s'all good, yo! "Who's dissin' the rally" they ask? Nobody in the media really cares to KNOW who is buying the market, because when they ask the answer is always repeated the same: "its money from the sidelines" say the pranksters. But don't feel sorry for pretty lil-Sally-on-the-boob-toob, she's incapable of comprehending the full schmeggege; after all, she's simply an associate degreed nail (pedicure) technician...but damn she looks good, so you listen!

What you should write to said pretty lil-Sally and her producer is..."Nonsense!"

Have you ever heard that for every buyer there is a seller? Hmm, odd thing is...that never seems to be important for Sally-Miss-Cheers-A-Lot (GoooOOOooooo team!). Naaaaah, she just allows the moronic regurgitated bile to be re-chewed like a cow munching happily on its cud. "Just keep chewing" she thinks to herself, "it will all work out (burp) in the end if you have the audacity of faith."

I know it "makes sense" to the delicate nail technicians in today's financial media but let's think about this for a minute. If Larry has $100,000 "on the sidelines" in a money market fund that he will transfer into the stock market by buying 1 share of Sally's Berkshire stock that Daddy War Bucks bequeathed her - not much happens. Sally sells the $100,000 share of stock and puts the money in the bank, which is now "on the sidelines"...before she consults her astrology charts for further guidance.

Since she immediately places the proceeds of her sales in her money market fund - nothing happens - there is no increase or decrease of "MONEY ON THE SIDELINES." The net change is nada.

It's all a ruse, perpetrated by Government Sachs (GS) and the rest to keep the market rolling.



Previous Day's Trading Room Results:

Trade Date: 8/4/09

E-Mini S&P Trades*
(before fees and commissions):

1) 80% sell @ 1:00pm at 999.50 = -1.50 (1 lot)

2) Algorithm positions (9)

3) "Reading the Tape" positions (9) ...combined Secret's, Algo, & "Reading the Tape" total...+7.50


Electronic (YM) Mini-Dow:

1) None today



Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!