Today's Market
by Dr Invest

Only five days ago, the reports of a "firm and rising equities market" flooded the news. Goldman Sachs derrided those, who in their opinion, were foolishly staying out of the market and were missing buying stocks at the cheapest they had been in years. For the 60% of the "financial talking heads" who had layed out their wise and logical arguments, only 30% of the economists/analysts were warning that impending danger lay before the market.

Sadly, the 60% were wrong and this week, billions of dollars have been lost by investors just like you. Let me put this into perspective. In the past five days, the DOW has lost 550 points. This is about half of the gains in the DOW from January to March. I held two stocks CATM and PETM that were sold as the market fell. CATM gaining 6% and PETM gaining 16%. Many investors are not that fortunate, they have invested into LONG-TERM FUNDS that have now lost half of their gains this year. (see: http://www.ajc.com/business/worst-loss-for-dow-1412381.html#fadetoblack)

Unfortunately, the party is not over. The VIX shows that FEAR is rising. Today, selling began in earnest and should the hopelessness continue into tomorrow, you will see the early signs of panic and a dramatic decline in the DOW.  For the sake of all my friends, I hope that such a dramatic decline doesn't ensue, but the market cares little about my thoughts.

How to Position Yourself

The first rule of investing is "Don't Lose Money!" If you are a "long-term investor", you hold-on and ride the market down, losing 10% , 15%, 20%, even 30%. If you have been following this blog, you will know that STOP-SELLS are suggested to decrease losses. Learning that you must be pro-active in selling your investments before losing money is an important principle in keeping your gains.

Only you, can contact your financial adviser and demand that he sell your loosing investments, and tell him, NOW! He won't like your demand, because he gets a "kick-back" for having recommended you to the fund and can only make money if you remain there. (One of those ugly secrets. And I can't say with certainty that all financial advisers do this.)  But the money you have invested is YOURS, not your financial adviser's.

You determine how much you are willing to lose in a down-turn,  and then DEMAND that your financial adviser or broker SELL, when you have lost that amount.

Future Outcomes

Over the past 12 years, the DOW has gained less than 1% per year and the S&P has been in the negative. When you deduct your fees of 2% to a financial adviser and the rise in inflation, you are upside down. At this time, with our nation's debt capping the possibilities of future growth, we are likely to remain in a narrow trading range.

To be sure, if Bernake doesn't remove some of the liquidity out of the market, we will see a rise in inflation and a rise in the stock market as consumers struggle to pay for increases in commodities. This will successfully penalize people who save money, but everyone will ultimately suffer in higher costs of living and taxes. Eventhough the figures in the market may change, the outcome will remain the same with a series of rapid up-trends and alter down-trends in a narrow trading range.

Until there is a reduction in national debt and the increase in national production, the financial stagnation will continue. Like the rest of the world, we have borrowed too much and worked too little. No one wants to hear this, but the years ahead will require a different kind of investing method to maximize your return.

(note: The above information is for entertainment purposes only and not to be used as investment advice.)

Today's Market

by Dr Invest

Patience is a word seldom used in investments today. We are more accustomed to words like "carpe diem".  The problem is that you are less likely to "sieze the day" if you are battling in a raging storm. It makes more sense to  wait until all your troops are mustered, to find the high ground, and to select a good day for battle.

John Hussman

John Hussman, with Hussman Funds wrote: As of last week, the Market Climate remained characterized by a hostile syndrome of overvalued, overbought, overbullish, rising-yield conditions. We've reviewed a variety of operational definitions of this syndrome in numerous prior weekly comments. Forget about the major declines that typically followed the handful of other instances we've observed this syndrome in the past, including the major peaks in 1972, 1987, 2000, and 2007. Even if we look over the past two years - and despite some early signals where market weakness was postponed by extraordinary monetary interventions - we still have not observed these conditions without resulting market declines of more than 15% (one in 2010 and another in 2011) that wiped out all of the gains since the earliest signal occurred, and then some.

Monetary interventions can periodically fuel speculative runs, which defer and spread out the adjustments that result from persistent overvaluation and misallocation of capital. But they can't get around the inevitability of those adjustments. The only real choice policy makers have is how large a bubble they choose to see collapse. On that front, we're clearly in better shape than we were at the peaks of 2007, 2000 and 1929, but conditions are generally more hostile than they have been in the vast remainder of market history. This will change. By our analysis, now remains one of the worst times on record to assume that market risk is acceptable.

Strategic Growth and Strategic International remain fully hedged. Strategic Dividend Value remains 50% hedged, its most defensive position, and Strategic Total Return continues to carry a duration of just under 3 years in Treasuries, with about 5% of assets allocated across precious metals shares, utilities, and foreign currencies. We don't view the prospective returns in any asset class as being desirable enough to "lock in" on an investment basis, which means that most financial risks here are essentially speculative, and rely on the emergence of investors willing to accept even lower prospective returns. Again, the one constant in the financial markets is that these conditions will change. Patient opportunism remains essential here.

Getting the Picture

Today, the market has turned down with the DOW JONES at a loss of over 1% at this time. Maybe it will change before the end of the day, we can only hope so. But the losses of the past two days and the sudden shift in the VIX will help you see that now is not the time to buy, but to wait.

We may well continue to climb higher as many money managers are predicting, but there is little to show any truth to support an advancing market, other than the "crowd mentality" of speculation. Stay away from the market at this time, you will be much happier and will "sieze the day" when the market truly turns around. Today, however, is just not that day.

Today's Market
by Dr Invest




Perspective is often an unusual thing. Perspective can give importance to things that are really unimportant or lull some one to devalue things that are really important.

The market usually rolls by news, fad, or popularity. It is the "crowd mentality" that rules in the market place. Think about it for a moment, billions are spent each year to get you to change your tastes and buy some new product. It doesn't matter that an ANDROID product performs equally as good and perhaps in someways is superior to an APPLE product; but when the announcement of a new APPLE product comes, every one must have one. (Note: Apple vigorously defended their I-Phone by suing Samsung for their Galaxy-S. Why? What was Apple defending? If the Apple product was truly superior, would the Samsung Galaxy-S really matter?)

I think you get the drift here. Even in the STOCK MARKET, companies build their reputations, market their products, and build a demand through advertising. "There is no guarantee of returns" is proudly pronounced with each advertisement, yet the suggestion is that "if you buy our product" you are going to get superior returns. A closer look at the actual returns is surprisingly lower than what you had imagined you were getting in your mind.

Ten years ago, an 8% draw down was acceptable during retirement without affecting your nest egg; today, most financial advisers are recommending that 4% is the new target of draw down before affecting your core investment. REMEMBER the word, PERSPECTIVE!

 When you hear: "The market rose higher in the past three months, than it has since 1984... blah... blah." This is dribble and the only basis of fact is that at some time in history the market climbed more. Let's looks at some charts, so we can get our own perspective.

 This is a 10 year chart. If we divide the total percentage by 10, we get the average annual return over the past 10 years for the S&P and the DOW Jones.

• S&P - 2.27% is the annual average return. Deduct your fees to an investment adviser and you will have .27%. Deduct the CPI... the rate of inflation and your investment is underwater.
• DOW - 2.45% is the annual average return. Deduct your fees to an investment adviser and you will have .45%. Deduct the CPI... the rate of inflation and your investment is underwater.

Now let's look at the past FIVE YEARS

 We are dividing the percentage return by 5 to get the average annual return over the past 5 years.

• S&P - (-.17)% is the annual NEGATIVE average return. Deduct your fees to an investment adviser and you will owe (-2.17)%. Deduct the CPI... the rate of inflation and your investment is well underwater.
• DOW - 1.81% is the annual average return. Deduct your fees to an investment adviser and you will owe  .18%. Deduct the CPI... the rate of inflation and your investment is well underwater.

The Perspective

You don't have to possess a doctorate to see the challenge. When you consider that studies show that investment portfolios underperform the DOW index, often as much as 20%, it is no wonder that so many are reluctant to risk their money in the Stock Market.

Like never before, Wall Street is trying to repaint themselves as reliable, honorable, and worthy of managing your life savings.

In 2009, I invested money with a financial adviser. After implying that he could beat the 14% average annual return that I had gained in my portfolio over the years, I let him manage some of my money. Later, I began to see an underperformance in my investments. I expressed my concerns, but felt brushed aside as inexperienced and a novice. Then I notice an unusual behavior that I later learned is used by many financial advisers. He moved my account from Scott Trade to TD Ameritrade and then to a third broker.

I was a novice! Each time the account was moved, the stocks were recorded at the price the stocks were valued on the day of their transfer. So, for example, EXXON was originally purchased at $90 and declined to $60 at a loss of $30. EXXON is transferred to a new brokerage and recorded at a value of $60, but 30 days later is worth $65. Your financial adviser provides you with a statement of your account that shows an increase in the value of EXXON of $5 per share. You feel exhilaration of getting a profit, when your total portfolio declined. And yes, this is a common practice in the industry.

This was like a reset button, all losses were erased and the new brokerage began showing profits for the transferred stocks until the market turned down again and there were losses. Then there was another transfer to another brokerage. Walla! Problem fixed!

When I deducted  the money I had invested into the portfolio from the total portfolio balance, I found that my original portfolio was declining. For example: My original portfolio investment was $10,000; I had added $5,000, totaling $15,000. So by subtracting $5,000, my portfolio should be at least $10,000; instead, the base portfolio was $8,500. Even with deductions for portfolio management, you couldn't loose 20% of the value of your portfolio and have the financial statement from the brokerage showing you were gaining 9%.

This is not a complaint, it is an observation. Smoke, mirrors, and redirection is commonly used in the financial management business. Since it happened to me, I have had others tell me the same happened to them. Confusing accounting, multiple accounts, and some times many different investment instruments leave the investor bewildered. The very thing some financial advisers intend.

Conclusion

The "crowd mentality" pushes the prices of stocks higher and higher. Though traders know that they shouldn't be in the market, the percieved opportunity to make a profit is just too tempting. The market can't continue to climb forever, eventhough the financial institutions loudly admonish investors that now is the time for the buy of a century.


(Note: The above information is for entertainment purposes only and not to be used as investment advice.)

Today's Market
by Dr Invest

There are really no real changes in the market to report. Now is not the time to be in the market. Sure, we have seen a dramatic rise in the market this week, only to see the market dramatically fall the past two days. This kind of cycling, up and then down, simply shows that the Bull Trend is getting a bit tired.

Andrew Horowitz pointed out that the Spearman Indicator is revealing these signs of weakness and that a downturn is eminent.

From the chart below, there is confirmation by the Bloomberg Trend/Stall study that a near-term high was reached and now a stalling condition is present. The Spearman is also rolling down. Now to get a confirmation, the Spearman needs to dip below the zero line.

That may occur with a couple of more stall days or a turn sharply lower (greater than 1%) on the S&P 500 index. That may be a time to either hedge out or consider lightening up long positions. From there, a short could be implemented through an ETF or options strategy.

Just a quick heads up….

The Bloomberg Trend/Stall Indicator:

TrendStall identifies points at which a trend is losing momentum and is likely to stall or consolidate. The determination is based on a Rate of Change of the ADX. The parameters for the ADX, Rate of Change, and Moving Average of the Rate of Change are user adjustable.

The bar that has been determined to be the ‘Stall’ point is marked by a triangle above or below that bar. The price bars leading up to a TrendStall signal are painted a different color to alert the user that the TrendStall histogram has risen above the threshold level confirming a trend is in place and a stall is imminent. The period after the stall bar may also be painted on the price chart, depending on the value of the histogram (ADX ROC) in relation to a moving average of that value. This ‘paintbar’ period is often valuable as an indication of a slightly longer stall confirmation.

So what is the Spearman Indicator telling us? At least to Andrew Horowitz, we will enter a downtrend in the weeks ahead. This is really all that you need to know, the future doesn't appear bright and investing at this time will be into a "sucker's market".

Knowing that the best season for investment starts in November, I am reluctant to invest at this time. My prediction is that the market will move downward; but even if it doesn't, the best time to invest will be this fall.

I can't assure the validity of the Spearman Indicator but I will be watching to see if the market turns downward as predicted. My wife recently asked, "Why aren't we in the market since it is doing so well." There is a pressure to make your money work, but the potential risk is too high.  Rule number one.... "Don't loose money!"  This is the objective, to assure that your minimize risk and maximize your return.

Loosing sight of the objective puts your entire portfolio at risk.  Buying at the "right time" gets your portfolio invested with some profit to spare, so you can handle a 10% or 15% loss and still make a profit. Be patient, you will make money.

(note: For entertainment purposes only, not to be used a investment advice.)

Today's Market
by Dr Invest


You might wonder if I am on vacation... and in some way, I am. Psychologically, I am disconnected from buying into the market right now.  In spite of all the "hype", the bull is drowning.

Here are some of the headlines on Yahoo Business today: "An Improving Economy Means Republicans Need a 'Plan B' to Beat Obama", "Goldman:Best Time in a Generation to Buy Stocks, Sell Bonds", "Home sales show strength, prices rise".  Companies with a "vested interest" in your money are applying pressure to MAKE YOU PUT YOUR MONEY INTO THE MARKET. After all, if the headline is correct: "Buffett Seizes Lead in Bet on Stocks Beating Hedge Funds", then all of us need to empty our bank accounts and buy up those stocks while they are cheap.

Here is a more appropriate headline for today's market: "When Wall Street Is Bullish, Investors head for the Exits".  The theme goes something like this: All of Wall Street's wildly bullish calls on stocks may be having just the opposite effect, driving wary mom-and-pop investors out of the market despite the long-standing rally. After all, they've been down this road before: One big-name analyst after another advocates a buy, buy and buy some more strategy, only to see a bubble burst that ends up trapping late-to-the-game individual investors.

In just the last week alone investors pulled another $126 million out of stock-based mutual funds and shoveled $10.7 billion into bond mutual funds, according to the Investment Company Institute.

The total outflow from stock funds was comparatively small to recent weeks, but the move is significant in that U.S-based stock funds, despite a stunning gain of more than 30 percent off the October lows, lost nearly $1.4 billion.

"There's a feeling that another shoe is going to drop somewhere, and they don't want to be caught in a situation where they can't get out," says Quincy Krosby, chief market strategist at Prudential Annuities in Newark, N.J. "What they don't want to get involved in is some trap that is being set by hedge funds or asset managers to get in so (the managers) can get out."

http://finance.yahoo.com/news/wall-streets-bullish-investors-head-195422829.html

Wall Street is wondering how, in spite of their barrage of their media misinformation that the time for investment has never been brighter, the little investor could possibly STAY OUT OF THE MARKET.

How could the "little investor" possibly think that the STOCKGAME was RIGGED. After all, they have all their investments hedged and sophisticated algorythms to tell them when to run. As the "little investor" you only have your wisdom to keep you from losing 1/3 of your portfolio.

ADVICE FROM JOHN HUSSMAN

Go to Hussman Funds and review their research for March 19th, 2012. Read all of it carefully. Yeah, a bit boring, but you need to be wise and understand all the free market advice from MSN or Yahoo is provided by people who want to get into your bank account and pillage your money.

Dr Hussman refers to "BOLLINGER BANDS". Go read up on the Bollinger Indicator so you can understand what the indicator is showing on a graph. In short, the upper band is showing that most stocks are OVERSOLD. This means that you are PAYING TOO MUCH FOR A STOCK.

This always indicates a radical downturn in the near future. Dr Hussman explains that some of his clients ask, "Well, why can't you position me so my portfolio can take advantage of continued upward climb of the market?" Dr Hussman rightly points out that one cannot predict when the downturn could take place. For example, If I bought the DOW JONES index on Monday, today it would have retreated around 1%. I don't really know if the market will continue downward... and the likelihood of the market moving downward from an all-time-high is greater than the market continuing upward. Are you getting it yet?

Why attempt to risk a large percentage of your portfolio in the market when it is most likely to turn downward? This is just good common sense. My take is that if we see a significant downturn before the election, you could see 6% to 12% gain in the fall. You don't need to make any more from your portfolio than that. "Pigs get fat, hogs get slaughtered."  Don't take a chance for a loss when the game in not in your favor. If "little investors" will keep bidding up the price, and some will, the professional traders will escape with the money and the retail traders (that is you!) will not find it funny.

For your investment's sake, go to Hussman Funds and read the Weekly Market Comment. http://hussmanfunds.net/wmc/wmc120319.htm

IF I WERE YOU

If I were you, I wouldn't take a chance at investing into the market at this time. Yes, I know, APPLE, APPLE, APPLE; but a market downturn doesn't care how well Apple has done or whether they are paying a dividend. If the market turns downward, so will the Apple stock.

The market follows CYCLES.  We are at the top of the cycle at this moment. The market has remained flat for the past 11 years, largely due to debt. It doesn't seem to me that we are going to escape this FLAT market and now that the high has been hit, we will see the market cycling downward, to hit a new bottom.

The S&P 500 Index shows us the sideways motion of the market. Check out the graph below:

For the past 11 years, your portfolio has gained little. A "buy and hold" method was quite lucrative from 1975 to 2000, but after 2000, investors have lost as much as they have gained. Even if the market once again hits the top redline, it is not worth the gut wrenching experience of not knowing when your entire portfolio may fall into risk.

As I said in January, stay out of the market. There are better days ahead with lessor risks.

(note: the above information is for entertainment purposes only and not to be used as investment advice.)

Today's Market
by Dr Invest


So here we are, the market has just had a break-out and continues to move strongly upward... and with no end in sight. The DOW moved above 13,000 today, suggesting a strong advance.

What could be moving the market? GAMES, GAMES, GAMES is the answer. The Federal Reserve is playing a dangerous game in which we all are forced to participate. You can't add billions in liquidity to the market, which is equal to printing money, without seeing INFLATIONARY PRESSURE.

We are seeing the price of stocks advance on the increased liquidity imposed on the market by the FED. We are also seeing an increase in the price of commodities. Your gas is higher, your groceries are higher, in the months ahead the cost of saving the U.S. from financial collapse, wil be rising costs. Rising costs means RISING PROFITS. These profits come not from increased buying, but from increased costs. The consequent rise in stocks is only smoke and mirrors, IT IS A GAME!

More and more pressue is being put upon the investor to buy stocks to keep from loosing the value of his portfolio. The contradiction here is that you can't afford to stay out of the market and you can't afford to get into the market.

Dr John Hussman at Hussman Funds wrote this week, "There's one question you need to ask yourself before investing in the market right now: Do I feel lucky?" A break-out typically signals a bull market for the months ahead. So you have to ask yourself: Is this the start of something big over the next few months, or is it the end of a six month uptrend.

I can't answer that question, because we are all guessing. I can't tell you how much in real dollars, the federal reserve has inflated the market. I can't tell you when that inflation will begin to show its ugly head in the market. All I know, is that a some point you will have to hold-your-nose and jump in.

Methods with Promise

Fortunately, I have provided to you some ideas that follow the "Ivy Portfolio". This method centers around long-term investing with a twist of selling when a selected group of ETFs fall below the 214 day simple moving average (SMA).

This is likely the safest method to use at this time, but don't put all your investment money into one method. If you have been out of the market, make your move back into the market slowly. Remember the FIRST RULE of trading: Don't lose money!

Let's say you have $100,000, divide it by 3. You now have $33,333.33 for each of the three parts. Take half of $33,333.33 to make your first investment into an EFT. Those following the "Ivy Portfolio" would invest $16,666.65 into an ETF called, VTI.  VTI is an EFT index in US stocks. You would hold the remaining $16,666.65 for investing after you have seen some PROFITS in the original investment into VTI.

In theory, once the EFT called, VTI gains 5%, you invest the remaining $16,666.65 into VTI. If the market suddenly dropped, you would lose only a minimal amount before the stop-sell engaged. This is the best way to limit your risk.

With another third of your portfolio, amounting to $33,333.33. You invest $16,666.65 into BND, VNQ, VEU, and DBC. (VTI is the fifth ETF of the Basic Ivy Portfolio) Only use these EFTs. Don't buy EFTs if below the 214 day moving average.

DO NOT buy an EFT without also placing a STOP-SELL on the EFT. See my video in the sidebar to learn how this is done on OPTIONSHOUSE trading platform.

For all the details, select MODEL ETF PORTFOLIOS in the sidebar and go to the bottom to read the ProFolio Model. You will find instructions on how to setup your EFT chart and 214 day moving average. Please keep the same EFTs that the Ivy Portfolio has suggested for their portfolio.

If you have questions, you can leave reponse on this blog.

Being Patient

I am inclined to hold-off just a bit longer before returning to the market. It is all the reasons that I have previously mentioned that makes me timid to invest now. The market continues to climb without any real fundamental reasons for climbing other than "crowd mentality".  Furthermore, the stock market cannot continue to rocket forward indefinately.

I do see opportunity at the end of October, until January and February of 2013. So at this time, I keep reminding myself about the benefits of waiting.

Let me remind you, that since the fall of the market in 2008, the market has now grown 100%. Thats an average growth of 20% per year. It is a fall in the market that sets you up for great returns, just don't be in the market when the fall occurs.

(note: the above information is for entertainment purposes only and is not to be used as investment advice.)

Today's Market
by Dr Invest

Watch the Sun! It might tell you of things to come. Around Scientists predicted that sunspots would peak around June of 2008 and then move toward a decline.  (search: sunspots.pdf).

Found on Google Docs is "Sunspots, GDP and the stock market". Written in May of 2007, the assertion is that in 2008 the market will retract because of a decline in sunspots. Laughable, isn't it!

But what if the correlation is correct?  A technical analyst, Charles Nenner thinks it is and predicts 2012 to be a year in which the sunspots peak and then decline once again and concurrently the stock market will do the same.

Markets Behaving Badly

Today, we are less likely to judge the market by a "natural course of events" when the government is using an "unnatural method" of putting liquidity into the market to sustain growth. (IE: twist, economic stimulus, etc.)  Germany inflated their currency during WWII until it the currency was worthless, and the along with the nations led to slaughter, were the German people themselves.

Before we start down this path of using the German Government of WWII as an example, we need to only look to ourselves to see our own Militarism and the manipulation of currency here in the U.S. and ask if we are not moving down a similar path. My point is this, you can make your market look any way you want it to look if you rewrite the rules. If I print money on my color printer, I go to prison; if the Federal Reserve prints money on their printer, the chairman gets a slap on the back for doing a good job. Markets behave badly, because people behave badly.

If it becomes known that CEOs are becoming billionaires through insider trading, smart people will not put their money in the stock market. If it becomes known that CONGRESSMEN are becoming billionaires from "insider information", people like you and me are going to invest elsewhere. If we learn that the Chairman of the Federal Reserve is "rigging the market", we are going to get out of the market. The market will collapse, businesses will fail, we will keep our money in a sock instead of a stock, and the government in sheer terror, will make promises to clean-up the "evil doers". Markets behave badly, because people behave badly.

About that Sun

I don't know if there is any truth to the market's connection to solar sunspot cycles. Perhaps the old contrarian adage: "When people are in the market, get out!" and "When people are out of the market, get in!" has equal value to the "sunspot theory". Either way, it is my belief that you should be out of the market right now. The market will decline and if there are the signs of recovery before the election this fall, make your money then. That will be the time that the incumbent president will need to shine and his political club will need to show that they are fully in control of the economy.

You will remember that in November of 2011, I purchased three stocks with equal investment going to each stock. FDO, DLTR, and CATM were the stocks. The average percentage over the three stocks was 6.54%. If you will remember the market was not strong and was very choppy until December of 2011. I know now that if I had stayed in the stocks, I would have gotten even more money. Do I regret selling? No!

Lesson number one, "Don't lose money." Lesson number two, "Remember lesson number one." Lesson number three, "Pigs get fat, Hogs get slaughtered." It is better that you were out of the market, wishing you were in; than, in the market, wishing you were out!

I see the stock market climbing and the temptation is great to jump in for the profits, but as you saw a few days ago the market turn down 206 points on the DOW, you can understand what a predicament you would be in to have just invested in several stocks or ETFs and then see the market move 200 points downward for a week.

Knowing that the market can abruptly move down can make a strong man weak and a tan man pale. I have boldly purchased stock and within minutes seen significant losses. I promised my self that if the stock didn't do better tomorrow, I would sell it. When it turned down for a second day, I promised myself, I'll sell it within the week. When you are setting on a $2,500 loss, you will be very timid about selling the stock, in hopes that your chosen stock will return to an uptrend. Later you will learn to be TIMID getting into the market and BOLD in getting out of the market.

This paragraph is truly for entertainment purposes. Jerry Seinfeld suggests to George Costanza that if what he always does fails, he should do the opposite. George declares that from now on, he is gonna be "opposite George". Sure enough, he does the opposite of what he would normally be inclined to do, and it results in George finding successive wins. Sadly, most investors make decisions that will cause them to fail and then say, "I'll never invest again!" It wasn't the investment that was the problem, it was the investor. Be "opposite George" for awhile. At least consider that if everyone is buying, you might need sell.  AT LEAST, PUT A STOP-SELL on your STOCK.

While I am rambling, I watched the PBS Nova special, "MIND OVER MONEY" several years ago. The other night, there was a re-run of "Mind over Money". You will find that academic research by universities are the most reliable when it comes to building a 'TRADING MIND and METHOD". Of interest was a segment on students, brought in for studies on the psychology of trading. It was found, that even when the value of a stock was going down and the likelihood of achieving gains were diminished, the students kept bidding the stock higher in hopes of finding returning profits.

What does this mean to me? The real market works the same way. When the underlying markers of a market are moving down, people keep bidding the prices higher in hopes of achieving profitable returns. It is only when the market collapses and hopelessness prevails, that price destruction ensues and the opportunity for profits rise once again.

Please read my blogs for the past two months, read the Hosington Reports and draw your own conclusion. Prices of stocks are moving higher, there is no basis for the rise in prices, and in fact, the underlying market indicators point toward a recession. Be patient now. The market will turn downward. If we are not at the onset of a recession, you will have an opportunity to gain 8% - 12% this fall.

NEW VIDEO RELEASE: Go to sidebar under PAGES in the right-hand column and select VIDEOS BY DRINVEST. You will see how to BUY and place a STOP-SELL on the OPTIONSHOUSE trading platform. (the older platform)

(note: the above information is for entertainment purposes only and not to be used as investment advice.)