Increased volume and a continued move up ward suggest both the worst is over and the end is already in site for Obama's socialistic agenda . I would like to see the market move to over 9000 on the DOW to confirm . Remember the market always anticipates future economic activity and it seems the failures of the last 3 months appear to be heading for an end or is it just as some would suggest you cant fall off the floor ?
Weekly discussion of financial markets, economics, politics, and the media. A member of Wall Street's Digital Underground since 1995
Showing posts with label Bear Traps. Show all posts
Showing posts with label Bear Traps. Show all posts
Monday, April 20, 2009
Monday, August 25, 2008
Real “real” people, the madness of crowds and continued confusion….
Let the “Real” Real people stand up and take a bow. Be wary of those who look to make stock recommendations who have no experience or qualifications. Every time the main stream types pick up the stock picking torch it signals a market top. Bear market rallies are particularly dangerous, best to keep your eyes on the long term prize.
In this bloggers view the fall season should see a firming of energy prices with the summers 20% correction in energy ,commodity and AG stocks signaling the end of a correction phase in these sectors and a global economy that will show it self to be more resilient than common wisdom gives it credit for. Demand will firm and stabilize.
I would remain cautions on banks and financials given the current continued credit contraction. Let’s face it banks make money by loaning money and if they don’t loan I am not sure how they are going to dig themselves out of the current bad debt crisis.
Keep a watchful eye on “Bear Traps” or when oversold sectors bounce from significant oversold positions. These rallies have a tendency to suck you in and leave you hanging on the top tick. Unless the fundamentals change then the sector is saddled with the same problems that sold it down to begin with.
And finally the 1970’s style policies and physiology is in tact and here to stay till the next generational change. Look for a continued mirror of that decade for investors.
In this bloggers view the fall season should see a firming of energy prices with the summers 20% correction in energy ,commodity and AG stocks signaling the end of a correction phase in these sectors and a global economy that will show it self to be more resilient than common wisdom gives it credit for. Demand will firm and stabilize.
I would remain cautions on banks and financials given the current continued credit contraction. Let’s face it banks make money by loaning money and if they don’t loan I am not sure how they are going to dig themselves out of the current bad debt crisis.
Keep a watchful eye on “Bear Traps” or when oversold sectors bounce from significant oversold positions. These rallies have a tendency to suck you in and leave you hanging on the top tick. Unless the fundamentals change then the sector is saddled with the same problems that sold it down to begin with.
And finally the 1970’s style policies and physiology is in tact and here to stay till the next generational change. Look for a continued mirror of that decade for investors.
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