The psychology of conscientious objection

Not to spend a lot of time on this - but just to say, if it doesn't feel right, don't do it. For example, a Stage 4 Market may produce some Short Configuration signals. However, acting on these should be reserved for the very aggressive in situations where you feel confident that the Uncertain Market signal will evolve to a Bear Market stage.

If you are a reformed smoker and you hate tobacco companies, don't buy tobacco stocks - don't go against the grain of your own gut feelings about things. On the other hand, if you are very pro-something, make sure you are keeping an eye of the companies that produce that item so you can invest when the time is right.

Another type of conscientious objection is the school of thought that it is un-American to short-sell. The thought process goes something like this - to desire for a decline in the price of stock for a company is wrong. If you feel this way, we would simply advise you to re-think what you have heard. Stock prices rise and fall in cycles. During a downward cycle, stock prices are going to fall whether you participate or not. Do you honestly believe that the big boys on Wall Street think it is un-American to short-sell? You need the ability to short-sell. You need to be able to participate in a downwardly moving market. Still not convinced? Read Weinstein - Chapter 7.  

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