Today's Market
By Dr. Invest


Should I say, I told you so? The DOW moved down 101 points, today would have been the day to be out of the market. While the news media might report the 101 point decline of the DOW, they are unlikely to report that RULE 48 was invoked today. This stock trading rule, RULE 48, is implemented only when there is a likelyhood of high volatility at the opening of the market. Simply said, my friend, "Had RULE 48 not been implemented today, the sell-off would have been shocking".

The reason for the big sell-off is that Europe has moved into recession territory and it is likely that we too will be pulled into a recessionary period behind Europe. Maybe the President will elevate our hope once again with a speech that will rally the market; perhaps our own tepid growth will suddenly spring to economic life and vitality; and we know that Bernanke will rise to the ocassion with yet another QE-3 program that will save the economy as did QE-1 and QE-2. But there is a big difference between hoping and action, a big difference between dreaming and reality.

So here's my investment plan for the coming three weeks. I'm staying OUT OF THE MARKET!

The market will likely continue wide swings in volatility. Should Euro-markets continue a decline both Asian and U.S. markets will also follow suit. The U.S. market is barely treading water at a 1% to 0% growth. Economists seem all over the chart on the status of the economy. What is clear, is that if traders and economists are confused, you don't need to be buying stocks right now. It is a sucker's market. Don't play the shell game, the market is only advancing on fumes in the month of September.

(note: the above article is for entertainment puroses only and not to be used for making investment decisions.)