Today's Market
by Dr Invest



 Just when it seems the dollar is under water, up it pops, then settles once again. The stockmarket is following a similar trend. After the EuroTribe's agreement in saving Greece, the markets popped. No one doubted the future for stocks was only a bright one.

In previous blogs, I pointed out that even if the EuroTribe made an agreement, they would still need to pass muster with their own political systems. In this case, I was right! When the Prime Minister of Greece declared his intent to put the EuroTribe's plan to a vote in Greece, the stock market plunged. 

True to form, we are having a seasonal rally. We did not entirely loose the gains from October. Even in the face of bad new from Bernanke today, the market continued to rally. The pressure to make investment gains, have over ridden the reasonable caution needed to reduce losses.

Keep Your Hand On The Switch

If you are in the market you need to determine how much you want to loose, then put a stop-sell on your stock. If you want to buy stock, determine how much you want to loose and put a stop-sell on the stock. If your stock continues to rise, follow your profits with a trailing stop. Don't even blink!

Stocks to watch are PETM, CATM, and DLTR. But you are responsible for selling these immediately if there is a down-turn. And this can happen in moments, not hours.

Recently, one of my favorite analysts, Louise Yamada, pointed to some bearish technicals pointing to a market decline. Lousie is too old to play games and reflects the truth. She, admittedly, suggested that the market could turn upward the remainer of 2011, but warns, "Be Cautious!".  She also sees that BONDS COULD TURN BEARISH.

I am invested in TIP and BND, two ETF bond funds. Eventhough they performed poorly through the summer, BND has returned around 6% for the year and TIP, around 9% for the year. Just as a balance to stocks, the ETFs are easy to buy and easy to sell. With the advice offer by Louise Yamada, I will put stop sells on the bond funds as well.

http://www.financialsense.com/financial-sense-newshour/big-picture/2011/10/29/01/ryan-puplava-louise-yamada/stay-defensive-for-now-new-bear-market-in-bonds

Click on the link above and read her report.

The Remainder of the Week

We have the EuroTribe meeting yet again with the big 20. I doubt that anything will be hammered out, but the market is forward looking, hoping for some new reason to invest. I believe that the market will continue to advance until 2012, but I would protect myself against any losses.

The market needs to settle a few days and show that it will continue to grow... who knows, maybe I will buy on Monday, but for today? I don't think so.

(Note: the above article is soley for entertainmen and not to be used for any kind of investment decisions)