Today's Market
by Dr Invest

Building dangerous to enter! You may not notice that something is structurally unsound, but if you only look... and think... you may reconsider taking a chance to explore a collapsing market.

Please review my last blog. I know that this week is being touted as a week of remarkable gains. Other than light volume and continued obvious signs that the market is deteriorating further, it was a good time for the traders to rule the week. And they loved it! Still, someone will have to move their money out first if the economy continues to slide. And that is the problem. The first 10% to sell their stocks will see a 3 to 6% gain from last week's rise, but 90% of those in the market will suffer lost as everyone runs for the exits should the market continue to creep down on the on-going negative news.

I was as surprised as everyone else, when negative news from last week on unemployment did not shake the temporary bull run. Clearly, exuberance has not yet left the market and the expectation is that the downturn in the market is the time to load-up on stocks.

I seldom direct readers to articles not my own, but here is an important read for you. http://finance.yahoo.com/news/Even-the-smart-money-is-apf-759903798.html?x=0 Even the Smart Money is confused by the signals being sent from the market, says David K. Randall. Robert Stein says, "We are in a no man's land." with $1.2 billion under his management, he says that the market is sending more question marks than clear signals of a direction.

Stein slashed his stock holdings by 50 percent in June after poor reports on economic indicators including consumer spending and new applications for unemployment benefits made him think the economy was stalling. He thought then that stocks would pick up during the last three months of the year. That's when he planned to buy, but now he's not so sure.

"We could buy again soon," he says. "But it's equally possible that we could reduce (our stock holdings) even more. We don't see a tipping point either way yet." Since hitting a high for the year in April, the Dow has fallen nearly 11 percent.

Mark Lamkin, who manages $350 million for retail investors and endowment funds as part of Lamkin Wealth Management says, "There is a huge tug of war going on and we don't know the direction." Lamkin says that he tells his clients that they could either lose their capital or an opportunity. "Right now, I'd rather lose an opportunity," he says. Lately, he's moved 70 percent of his client's assets into cash.

If the professionals are moving to cash, what should that tell you? The barn may not collapse, but do you want to take a chance and explore it?  Now is the time to learn about