The challange of today's market
The challange of today's market
Again, another terrorist bomber in Israel has put a real damper on the world markets and here at home with threats isn't making our ability to sustain a rally possible...
Investors are feeling extremely uneasy and cautious by staying on the sidelines.Last weeks rally gave many profit takers reason to make for the door today..The small rally today near the end was shorty protecting his butt and happily selling into the strength.
So what is one to do, stand your ground and watch the reteat? Or join the wobbly knees eating peanuts in the bleachers like seeing your horse bet come in last.
There are bargins out there,but not in the big caps anytime soon. Your best bet would be to hold majority in cash...This market will be giving ground to terrorist and until we get a handle on this, investors are going to be too nervous to play.Remember, we need volume and that's starting to fall off and summer is coming..
What is ahead for the markets??Well,as long as we continue to feel the effect of terrorists here and abroad,there will be very little volume to move this market and probably will trade sideways...I beleive that we have reached our bottom,but an upside is not going to happen anytime soon....
I generally never concern myself with the overview of the markets..My belief is that no matter what the condition of the economy or world events, there will always be companies that do well above the others and this is what now has taken place.
Remember the exuberance of 2000, where only a dart board could give you a winner,well those days are gone and it takes good solid DD and an understanding of world events and the economy.
Look for industries that play an immediate role at the time and park money in defensive stocks,like Procter&Gamble where these type companies always carry the necessities of your daily lives,as with your food groups.
If you have been in this market for some time and carry issues from companies that have lost their ground,you will have to consider what plagues many investors and when is enough, (losses) enough...
This is the true measure of discipline,when to hold them and when to fold them...
Have a good day..
ET