The period we're in now is not necessarily a "bull market" or a "bear market" but more like a structurally "fair market." I didn't make that up on my own -- Tom Dorsey, from Dorsey Wright and Associates in Richmond coined that term. I think that makes a lot of sense....
The news surrounding Bear Stearns on Friday morning was not good! There are several important elements to this story. The first element is the most important one: Bear Stearns appears to be out of cash. If you've ever traded on margin (or know someone that does),...
The Dow Jones industrial average dropped below 12,000 today, March 7. In technical terms, this is a significant move. On my point and figure charts this represents another sell signal and tells us that the average may have further to fall. Not that I want to be in the...
Most Wall Street recommendations to buy are based on projected future revenues and/or projected future earnings. Projected. Or you could say, "predicted". Ever notice that a stock will begin to drop (many times without any news), and people will begin to ask "why is...
Most Wall Street recommendations to buy are based on projected future revenues and/or projected future earnings. Projected. Or you could say, "predicted". Ever notice that a stock will begin to drop (many times without any news), and people will begin to ask "why is...
The beauty of the Point & Figure chart is that the chart has no preconceived bias. A Point and Figure chart doesn't care who owns the stock, or who likes the stock...or even if somebody just predicted some stock would double in the next 12 months. The chart only...
Friday the market was down 370 points (2.7%). It also happened to coincide with the 20th anniversary of the 1987 market crash. There are gigantic differences between the market in 1987 and the market in 2007. In 1987, inflation was 5%, long-term interest rates were at...
One of the best tools we have at our disposal is something called "relative strength." Look, you can't beat the market, unless the investments you own ARE beating the market. In other words, hanging onto something "just because" will always drag down your overall...
OK, in just the last few days, the indicators I rely on to manage your money flipped from defense to offense. This means we ought to be looking to put money to work. But before you jump in the pool, let's examine some facts: The bullish percent (the primary indicator...
On Friday, the Federal Reserve cut the discount rate by a 1/2 pt. They cut the discount rate -- NOT the Fed Funds rate. Understand, the discount rate is the rate banks and brokers are charged to borrow from the Fed. This doesn't change rates you and I are charged. The...
