Today's Market
by Dr Invest
Today we want to look at where we are at in our positions and then define where we want to go. We are using tools readily available to any investor and without charge. Go to Yahoo.com and then investments. Go to CHARTS and select INTERACTIVE. I have started with one of my investments called BND. Then I select COMPARE on the chart and add TIP and IAU. I selected 6 MONTHS to see how these positions have performed since MAY when I entered TIP and BND.
Under COMPARE are also all the major indexes and I selected DOW, S&P, and Nasdeq.
This chart gives me a lot of information. First our range is from MAY, so don't get confused. The S&P is hovering slightly above 0 since May in gains. The other two indexes are doing worse with the DOW nearing negative 2% and NASDEQ moving above negative 2%. All the major indexes turned down in early October and have continued a downtrend since that time. Listen! YOU CAN'T SEE GAINS IN STOCKS WHILE THE MARKET IS IN A DOWNTREND. (The exception is inverse ETFs or shorting stocks. Shorting is challening for the novice investor and requires real experience to master your shorts. Hedging is a different idea involving taking two positions at the same time to protect a downside of a particular position. For example: I buy $100K of IBM stock. I am concerned that my IBM stock could loose value so I buy an OPTION to protect me against a downturn in the price of IBM stock. See you are already confused... so KISS is a better principle. KeepItSimpleStupid!)
Getting back to our chart, it shows that our position is working. We have navigated through some rough water with all the indexes turning down almost 9% from May to June and then climbing almost 13% by mid-September. Since September the fall from grace has been almost 6%. Now I am not being exact, but just glancing at my chart and generalizing over all the indexes. Generalizing is really all you need for this exercise. At a glance, we can see that TIP, BND, and IAU have turned up rising roughly 1% or more over the past week.
What is clear, is that STOCK INDEXES are not viable at this moment. A quick look at VEU (all world stock indexes) and VTI (All U.S. stock indexes) show a downward trend for the present. My interest will be in the DOLLAR STORES as individual stocks for the holiday season.
Again, we are looking for general ideas as we consider DOLLAR STORES for our investment into stocks. DLTR is the lowest because they are expanding their stores. Eventhough DLTR falls above negative 20%, it could be a sleeper...with more stores they could suddenly grow faster and bring the best gains. Personally, I see that as speculation and wouldn't make DLTR my choice.
FDO falls below 0% since MAY and DG does little better. This leaves me with three probable selections of interest. Dollarama, a Canadian dollar store (DOL.TO), Walmart (WMT) and Target (TGT). For stock positions, I will select these three stores DOL.TO, WMT, and TGT, taking 20% of my $10K portfolio dividing it equally between the three stocks. A stop-sell will be placed at 8% below the purchase price. Friday will not likely be the day to make the purchase because of the over 1% gain in the DOW. The market will probally settle down by the first part of next week.
(note:the above information is for entertainment purposes only and not to be used a investment advice.)
by Dr Invest
Today we want to look at where we are at in our positions and then define where we want to go. We are using tools readily available to any investor and without charge. Go to Yahoo.com and then investments. Go to CHARTS and select INTERACTIVE. I have started with one of my investments called BND. Then I select COMPARE on the chart and add TIP and IAU. I selected 6 MONTHS to see how these positions have performed since MAY when I entered TIP and BND.
Under COMPARE are also all the major indexes and I selected DOW, S&P, and Nasdeq.
This chart gives me a lot of information. First our range is from MAY, so don't get confused. The S&P is hovering slightly above 0 since May in gains. The other two indexes are doing worse with the DOW nearing negative 2% and NASDEQ moving above negative 2%. All the major indexes turned down in early October and have continued a downtrend since that time. Listen! YOU CAN'T SEE GAINS IN STOCKS WHILE THE MARKET IS IN A DOWNTREND. (The exception is inverse ETFs or shorting stocks. Shorting is challening for the novice investor and requires real experience to master your shorts. Hedging is a different idea involving taking two positions at the same time to protect a downside of a particular position. For example: I buy $100K of IBM stock. I am concerned that my IBM stock could loose value so I buy an OPTION to protect me against a downturn in the price of IBM stock. See you are already confused... so KISS is a better principle. KeepItSimpleStupid!)
Getting back to our chart, it shows that our position is working. We have navigated through some rough water with all the indexes turning down almost 9% from May to June and then climbing almost 13% by mid-September. Since September the fall from grace has been almost 6%. Now I am not being exact, but just glancing at my chart and generalizing over all the indexes. Generalizing is really all you need for this exercise. At a glance, we can see that TIP, BND, and IAU have turned up rising roughly 1% or more over the past week.
What is clear, is that STOCK INDEXES are not viable at this moment. A quick look at VEU (all world stock indexes) and VTI (All U.S. stock indexes) show a downward trend for the present. My interest will be in the DOLLAR STORES as individual stocks for the holiday season.
Again, we are looking for general ideas as we consider DOLLAR STORES for our investment into stocks. DLTR is the lowest because they are expanding their stores. Eventhough DLTR falls above negative 20%, it could be a sleeper...with more stores they could suddenly grow faster and bring the best gains. Personally, I see that as speculation and wouldn't make DLTR my choice.
FDO falls below 0% since MAY and DG does little better. This leaves me with three probable selections of interest. Dollarama, a Canadian dollar store (DOL.TO), Walmart (WMT) and Target (TGT). For stock positions, I will select these three stores DOL.TO, WMT, and TGT, taking 20% of my $10K portfolio dividing it equally between the three stocks. A stop-sell will be placed at 8% below the purchase price. Friday will not likely be the day to make the purchase because of the over 1% gain in the DOW. The market will probally settle down by the first part of next week.
(note:the above information is for entertainment purposes only and not to be used a investment advice.)
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