Today's Market
by Dr Invest
Perhaps it is only speculation, but Walmart has been beaten down for the past week and posed a buying opportunity. WMT had fallen to a low of $68 and then began to climb higher. I placed a STOP-BUY on WMT for 69:25 on Thursday evening. The theory here, is that WMT had began an uptrend after being beaten down and the upcoming BLACK FRIDAY sales would boost Walmart's profits.
As predicted, WMT was purchased today as Walmart surged in price, ending at $70.20 and gaining .95 in price. Gain was 1.37% interest. At least for Friday, the newly acquired position in WMT paid off.
The next stock position will be a return to CATM. You will remember that I have already lost 5% on my purchase of CATM when Cardtronics fell to the STOP-SELL. Like Walmart, I will use a STOP-BUY to purchase CATM if it moves up. I think it will move up and having been severely beaten down, its climb could be quite dramatic.
That's about it. I'm looking for a stock position before the end of the year and need at least gains of 8% or more on each position. I have been using a $10,000 portfolio as my example, investing 1/3 in a BOND POSITION, 1/3 in a CASH POSITION, and 1/3 in a STOCK POSITION. In the bond position I have purchased BND and TIP; in the cash position I have purchased IAU, a gold trust, and I am keeping the remaining 2/3rds of the cash position in cash; in the stock position I am presently holding $1,111 in WMT and wanting to invest the remaining $2,222 in other stock positions.
What has complicated investing in 2012 is a failing economy, propped up by government stimulus. Clear signs point to a recession with business slow down and the world economy in a slump. Bernanke admitted that little remains in his tool box to fix the economy, especially if politicians push the economy over the fiscal cliff.
Let me make this clear, this is an economy you can loose money in. The data remains the most negative in recent history and though the public continues to spend as though they are rising out of a depression, business are recording record slow downs in sales. Think with me for a moment... this is the reality of stagflation, that there seems to be both positive and negative economic events occurring at the same instant. We are beginning to hire once again, but there is not enough real growth to sustain the new hiring. Do you see the odd juxtaposition? We are building new houses once again, but banks are making it too hard for people to get loans. Again, a juxtaposition in which housing starts are putting people back to work, but no one can qualify for a loan... so the building can't be sustained.
All of 2012 has been filled with record breaking events...12% gains in the market by April, then almost all the year's gains erased by the end of May... then 13% gains by September with the DOW falling to a little more than 3% gains for the year. Good news... then bad news. By the time we reach the end of 2012, I predict we will not have achieved the spectacular gains that the more liberal economists had predicted. If you had kept to a buy and hold methodology, you will have been disappointed. Even though we may see a short Christmas rally, there will be some difficult days in the near future. Keep your STOP-SELLS in place and be prepared to lose some money. A 3% gain in 2012 will be good, a 6% gain will be considered fantastic.
So 2012 is no ordinary year and will prove to be a big let down for most investors. Those on a buy and hold track have already lost money and those investing by seasonal trend also are losing money...most of these losses can be attributed to government intervention.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
by Dr Invest
Perhaps it is only speculation, but Walmart has been beaten down for the past week and posed a buying opportunity. WMT had fallen to a low of $68 and then began to climb higher. I placed a STOP-BUY on WMT for 69:25 on Thursday evening. The theory here, is that WMT had began an uptrend after being beaten down and the upcoming BLACK FRIDAY sales would boost Walmart's profits.
As predicted, WMT was purchased today as Walmart surged in price, ending at $70.20 and gaining .95 in price. Gain was 1.37% interest. At least for Friday, the newly acquired position in WMT paid off.
The next stock position will be a return to CATM. You will remember that I have already lost 5% on my purchase of CATM when Cardtronics fell to the STOP-SELL. Like Walmart, I will use a STOP-BUY to purchase CATM if it moves up. I think it will move up and having been severely beaten down, its climb could be quite dramatic.
That's about it. I'm looking for a stock position before the end of the year and need at least gains of 8% or more on each position. I have been using a $10,000 portfolio as my example, investing 1/3 in a BOND POSITION, 1/3 in a CASH POSITION, and 1/3 in a STOCK POSITION. In the bond position I have purchased BND and TIP; in the cash position I have purchased IAU, a gold trust, and I am keeping the remaining 2/3rds of the cash position in cash; in the stock position I am presently holding $1,111 in WMT and wanting to invest the remaining $2,222 in other stock positions.
What has complicated investing in 2012 is a failing economy, propped up by government stimulus. Clear signs point to a recession with business slow down and the world economy in a slump. Bernanke admitted that little remains in his tool box to fix the economy, especially if politicians push the economy over the fiscal cliff.
Let me make this clear, this is an economy you can loose money in. The data remains the most negative in recent history and though the public continues to spend as though they are rising out of a depression, business are recording record slow downs in sales. Think with me for a moment... this is the reality of stagflation, that there seems to be both positive and negative economic events occurring at the same instant. We are beginning to hire once again, but there is not enough real growth to sustain the new hiring. Do you see the odd juxtaposition? We are building new houses once again, but banks are making it too hard for people to get loans. Again, a juxtaposition in which housing starts are putting people back to work, but no one can qualify for a loan... so the building can't be sustained.
All of 2012 has been filled with record breaking events...12% gains in the market by April, then almost all the year's gains erased by the end of May... then 13% gains by September with the DOW falling to a little more than 3% gains for the year. Good news... then bad news. By the time we reach the end of 2012, I predict we will not have achieved the spectacular gains that the more liberal economists had predicted. If you had kept to a buy and hold methodology, you will have been disappointed. Even though we may see a short Christmas rally, there will be some difficult days in the near future. Keep your STOP-SELLS in place and be prepared to lose some money. A 3% gain in 2012 will be good, a 6% gain will be considered fantastic.
So 2012 is no ordinary year and will prove to be a big let down for most investors. Those on a buy and hold track have already lost money and those investing by seasonal trend also are losing money...most of these losses can be attributed to government intervention.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
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