…must come down. That’s how the “old” saying goes, but is that going to be the case with the stock market? The question is when is it going to start moving downward again? The last month has been great for some hefty gains and it’s actually been able to stay at these levels for over a week now.
.
Two weeks ago I said that it was time to start scaling out of some of my positions to lock in the gains that I’ve made. During a three week run in the stock market, I gained over 22% in my portfolio and was quite happy. During the last two weeks, I did just that. Unfortunately, I didn’t read the trend that was going on and missed out on what could have been another 12%+ in my portfolio.
.
Days like these will happen and as an investor, I’ve learned not to get myself “bent out of shape”. Instead I look at the positive side, which is the fact that I made a good chunk of change. I still own some position in the stocks, just not as many as I did two weeks ago.
.
The truth of the matter is that the market will back off. But to what level. Can the DOW pull back down below 7000? Is all this growth in the past month in the stock market temporary? Is the worst to come, already past us? It seems that no matter what form of media you get your news from, they talk about how the stock market recovers six months before the economy does with unemployment shortly behind it.
.
If that’s the case then, it’s time to wait for any sort of a pull back and start accumulating shares. I’m still thinking that the worst is not over. The DOW at 7000? Yes, I do expect to see that again real soon (I just expected it sooner). At where the DOW sits now, it means that there should be a 12.5% correction in the market. Like I said, I do see it it coming, but it may take as long as three months to get back there.
.
Or will it?

Tags: Economy, Getting Started In The Stock Market, The Week Ahead

Related posts

• The Bull In The China Shop (0)
• Stock Market Technicals (0)
• Patience And Timing Are Everything (0)
• Confidence In The Stock Markets Are Down (0)
• Will The Stock Market Retest The Lows? (0)

.
I’ve been warning many of my readers that the stock market will take a dive very soon and from the looks of the last few days, that time has come. If you look at stock market technicals, you are aware that the DOW at a level of 7550.00 is a level that would cause many sell-offs to happen.
.
Today’s lows of the DOW was 7551.01, which came very close, but not to the point where the sell off would have occurred.
.
I said it before and I’ll say it again, you need to keep plenty of money on the sidelines for times like these when the prices for stocks in good companies are at a great “sale” price. These companies are not damaged, just the stock prices are. You need to be ready to take advantage of these buying opportunities to help grow your portfolio during a bad economic down-turn.
.
For those of you that have had patience over the last month or so, this just might be the time for you to jump in and build a good solid position in the companies that you’ve been watching. I’ve been holding back in jumping in with both feet and with the stock market down at these levels, it’s hard not to just dive in head first. Of course I won’t involve my emotions in the markets.
.
Who knows where the markets will be in a month or two from now. Especially with the fact that Obama‘s stimulus plan hasn’t really been accepted by Wall Street and Main Street. On the news of the plan being approved, the Dow has dropped quite a bit. The markets can hit that crucial level of 7550 and all bets will be off, the sell off will begin and it won’t stop until it get to about 7300 basis points. Then again it may just take back off to the 9000 level just like it did not too long ago.
.
No matter what, the rest of 2009 is going to be a total washout and the only way to get your portfolio to grow is to make trades when the time is right and then get out while the getting is good. Either way the market may go either way over the next couple of days, you should keep an old saying in mind, ” hope for the best, but prepare for the worst”. This way you’ll be ready without being disappointed.

Tags: Diversified, Economy, Getting Started In The Stock Market, How to make fast money, Stock market for beginners, Stock market news, Stock trading, The Week Ahead

Related posts

• The Stimulus Plan Doesn’t Stimulate Anything (0)
• On Your Mark, Get Set… Go Buy (0)
• It Happened Again In The Stock Market (0)
• Confidence In The Stock Markets Are Down (0)
• What Happened To The Stock Market (0)

What a year this has been for the stock markets. When this year started I knew the indicies would drop quite a bit, but no where to the levels that they are at now. After the years we had in 2005-2007, there was no way that the DOW or any other market would have a positive one in 2008.
.
I’m looking forward to the next year to start already. I figure that there are many who are waiting for it as well. Holding off on the sidelines and just wait out the rest of this year. I’m very optimistic about 2009 and expect a very profitable one at that.

We will need to stay away from certain sectors for the beginning part of the year and in some cases, stay away from others all year long. Which ones they are, I’m not really sure, but I do know that the real estate market is one that I will be involved in sometime in the year.

The markets have held up well in the last two weeks (even without the Santa rally) and I expect this week to be higher than where it closed on Friday. So hang on to your hats and enjoy the ride.

Tags: The Week Ahead

Related posts

• What To Expect For the Week Of 8-4-2008 (1)
• What To Expect For The Week Of 7-28-2008 (1)
• What To Expect For The Week 8-18-2008 (0)
• What To Expect For The Week 8-11-2008 (1)
• What A Long Strange Trip It’s Been In The Stock Market (0)