Today's Market
Dr Invest

It's up! No, it's down! Everytime I say, "Don't buy yet!" My prediction remains true and you would be wise to listen. Just don't buy. The talking heads proclaim...the market is going up! The next day, the talking heads acknowledge....the market is going down! 

This is a DAY TRADERS MARKET. If you know anything about DAY TRADING, one day, a trader has made thousands of dollars and the next day, has lost tens of thousands of dollars. Even today, we started with a 150 point gain and now has fallen to only a 50 point gain. We could be in the negative by the end of the trading session. This is not what you can call INVESTMENT. The CONSOLIDATION technical (movement sideways) is not where you make money. You make money when the market is in an UPTREND.

The above chart shows a SIDEWAYS MOVEMENT called, CONSOLIDATION. What is troubling is that one cannot predict whether the market will move UPWARD are DOWNWARD. This is the delimma for economists and traders. They have to make money. They need their clients to see them fighting to make money.

Listen, you don't need to make money right now. Stay out of the market! You will be burned. Only enter the market when their is a likelihood that the market will rise. I can only speculate what the market will do at this time. Most of us have heard the story of the reporter that asked the world's greatest stock trader, "What's the market gonna do today? Livermore responded: "It's gonna fluxuate."



One of the indicators use to predict the movement of the market is the price of copper. Many traders use the copper chart in real-time to judge when to get out of trades. (sell) We have been in a period of consolidation which could break toward an UP-Trend or a DOWN-Trend. Looking at the ABOVE CHART, JJC stock, there is a clear DOWNWARD TREND in copper. This makes me very nervous an would indicate that the market will eventually follow copper in a DOWNWARD TREND.

My goal is to "make you money". If you must make money at this time, put your money into C.D.s, but now is not the time to try out stocks or products connected to stocks. Furthermore, neither Treasuries nor Bond Funds can be trusted. The manipulation of the market by QE-1 & 2 has been absorbed by Treasuries and the low return is likely to be surpassed by inflationary pressures. Likewise for bonds, the minimal return will likely be surpassed by increasing inflation. Realistically, inflation is not a problem in a recession or depression. And perhaps the reason that Bernanke is not very concerned about inflationary pressures at this time.

So here's my advice: stay out of the market until you see a month of predictable "unstimulated by the government" growth.

Cheers!

(Note: The above information is soley for entertainment purposes and not to be used for any invesment advice.)