UPDATE ON MONDAY'S MARKET
by Dr. Invest

The news is out... don't worry about tomorrow, everything is fine. I warned about the S & P downgrade, and it will affect the market tomorrow. It is 12:00 and I am looking at the Asian Markets. NIKKEI down 2.13%, HANG SENG down 4.04%. These are reasons for you to not enter the market on Monday.

Chicken Little is saying, "the sky is falling" and Mother Hen is saying, "It's a beautiful day". I wouldn't listen to either one. The statistics are not in your favor over the next two months, as August and September typically do not show high returns for stocks. The market will react to the downgrade by the S & P and you should expect to see the market drop 1+% tomorrow. Regardless of Geitner's projections, the VIX or negative feelings about the market will rule the day.

Some economists believe we will see a 17% rise in the market before the year's end and that is very possible, it just doesn't seem like tomorrow is the right day. Oil has fell to a low of $87 per barrel and oil stocks look attractive, but I would wait until it looks like we have hit a bottom and have seen a rebound. Even then, be warned that what seems the bottom could be a series of bottoms with LOWER LOWS. Wait for a while, until October, then see where the direction of the market is going. There will be plenty of time to make money.

Until October, I suggest that you DO NOT ENTER!

(Note: the above article does not constitue financial advice and is soley for entertainment purposes only.)