Friday was a wild day — market up 130 points. Why? Two reasons. First, Friday was option expiration — which always leads to more volatility. The most volatility occurs during expiration week each month. So, am I saying the market will fall from here? No! But it wouldn’t be a big surprise to see the… [Read More] April Option Expiration Day
Several indicators I follow have flipped positive recently. That doesn’t mean I don’t want to run right out and invest every last dollar back into this market today. Here’s why: Financial stocks make up 20% of the S&P 500 Index. At 20%,financial stocks are the largest piece of the SP 500, one of the most… [Read More] A Bounce in Stocks Warrants Cautious Optimism
You’d think the news that rising corn prices would provide a great opportunity to make money in that commodity. But the move in corn was…not last week…or even last month…but last year! In many instances, by the time a “news story” is reported in your daily newspaper, on the evening news or in a magazine,… [Read More] Why is my Stock Price Falling When it was on the Cover Page?
The US government has been subsidizing the research, development and use of ethanol. This is being done in an effort to provide an alternative solution to importing costly oil and gas for use here in the United States. Some day, ethanol might be a great alternative. However, it is having a “ripple effect” in the… [Read More] Ethanol’s Ripple Effect
No wonder many people have lousy opinions of Wall Street folks. Read on: Written in Barron’s March 5, 2007 issue, Bill Alpert noted that nearly 20% of “Analyst Recommendations” over a ten year period from 1993-2002 were changed — after the fact. Twenty Percent! As a result of the changes, the recommendations seemed to be… [Read More] Re-writing History on Wall Street
In my previous message, I talked about how we moved to defense twice in 2004, but it seemed the market didn’t go down either time. If the markets weren’t going down, why get defensive? It’s an example of where the “generals” stay to fight, but the “soldiers” were leaving the battlefield. Sometimes, when the market… [Read More] Am I the Only One With Losing Stocks?