Market In Transition?

The briefing room was updated on Saturday, but due to Holiday festivities, I'm just now letting you know of it (it's my excuse, and I'm sticking with it).

The last briefing (June 24th) stated "While we remain defensive at this time, we’ll be watching closely for either (1) further oversold conditions for another short-term trade or (2) a turn on the hourly and daily cycles

which could spark a longer lasting up cycle."  

This week's briefing outlines some of the events last week and the difficulty that we will sometimes have during market transitions.  

As we have mentioned numerous times, investing is a game of patience.  The market never goes straight up and it never goes straight down.  Often times when it changes over all direction, overzealous buyers (in a market transitioning from down to up) will cause the price to go up much quicker and steeper than it will move over time.  We as patient investors choose not to "chase" the price when it is out of its normal boundry.  A well trained dog will not chase cars due to the excessive risk to his health.  We will not chase excessive price due to the excessive risk to our portfolios.

Last week was the end of a month and a quarter.  We will quickly find out if this change in price direction is for real or simply window dressing created by mutual fund managers.