Today's Market
by Dr. Invest

I love listening to the "talking heads". President Obama's spokesman said Wednesday that the administration doesn't believe there's a risk that the economy will head back into a recession. And that is probabally true with the promise of QE-3 that emboldened investors to purchase stocks, that barely put the market into the black.  In Central America, they have an interesting saying, interpreted it sounds something like this: "A monkey dressed in silk, remains a monkey still." Dressing up the present economy with beautiful words and promises, doesn't change the fact that we have a bad economy. One drop of water doesn't cure the drought, just like a rise in the market of 25 points doesn't resolve the fact that our economy is floundering.

Throwing more money at yet another stimmulus package will result in the same lackluster outcome. The market may continue to grow, albeit slowly, but a strong recovery is somewhere in the future. What is a worst effect is that stimmulating the economy by buying more toxic debt from banks and reselling it to the American people as treasuries will result in the increase of inflation in the years ahead.

So what to do? Keep waiting. Yes, I know that the "talking heads" are telling you that everything is all right. But how sound was their advice in warning about the last recession? And what had they predicted about the recovery? We were, according to them, well on our way to reducing unemployment, building a strong commerce, and creating a flourishing economy. So here we sit, getting reports of increasing unemployment and decreased earnings.

I still suggest holding out until October before doing serious investing. I think that CRZO and APA would be worth watching. I also think that CATM and PETM may show signs of recovery and might do well in the months to come.

Enter these trades carefully and add more stock to your position once your original purchase has gained 3 - 4%. Fully plan how much you are willing to lose if the investment doesnt produce or where you will place a STOP SELL once you see gains for your stock. This is called an ENTRANCE and EXIT STRATEGY. (I will give you some rules on entrance and exit strategies in the future.)


(Note: the above information is not to be used for investment purpose, but is soley for entertainment purposes only.)