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?
About a week ago, our indicators told us “supply” was now in control of the market. What happens to prices when there is not enough “demand” and too much “supply” of something? Prices must fall. So we should focus on protecting money. Moving to defense doesn’t mean that the market will go straight down. It… [Read More] Are we OK Just Protecting Money?
All of the short term AND long-term indicators I follow have now turned negative. All of ’em. Including the S&P 500. What’s that mean? Well, the S&P 500 Index is simply the 500 largest stocks in the US. And, basically, 70% of all money in mutual funds sits in the same 500 stocks. That’s a… [Read More] All Indicators Turn Negative in Down Markets
After Thursday and Friday’s action, the “NYSE Bullish Percent” has now reversed down into a column of O’s. This reversal down into O’s means the defensive team is on the field. So we move into a wealth preservation mode from a wealth accumulation mode. Does this mean the market will definitely crash? Absolutely not! A… [Read More] Here’s The Signal To Begin Wealth Accumulation Mode
As I am writing this, the Dow Jones is down nearly 180 points. Sounds like a lot, right? That’s about 1.5% By comparison, October 19, 1987 the stock market dropped 22% in one day. Perspective does matter. Anyway, the last few days, I’ve seen headlines like: – Greenspan Thinks U.S. Heading Toward Recession – High-Risk… [Read More] The Stock Market is Down Today