How to Beat This Market’s “Three Cs” of Risk

How to Beat This Market’s “Three Cs” of Risk



This is an outstanding article by Tom Gentile about why the stock market is so volatile now.  China is one reason for market instability because their country is going through their "irrational exuberance" period like we did in 2000 during the dot.com bust.  All stock market tops will eventually decline.



Low commodity prices are a second reason for volatility.  Copper and oil are used for economic expansions, and we have low demand for these commodities now.  We must adjust to a slowing world economy.  A third reason for market problems is that currencies are being devalued.  So, we need to be looking at the NYSE McClellan Oscillator ($NYMO) to note when it is best to be short or long.  Short the market when $NYMO is positive and go long when $NYMO is -80 or worse.  Then, sell as soon as you have made a profit because it won't last.