Monstrous Monday Stock Blog 07/06/09

Sunday, July 5, 2009 Leave a Comment

Guess what? We're doomed.....We're all doomed..... That's the essence of all the headlines I'm reading...And truth is....no one knows what will happen. But let's keep beating the drum long enough, and what will happen?


For all those geeky Star Wars fans (don't worry, I'm one of them), when General Grevious tells Obi-wan Kenobi, "You must realize YOU....ARE....DOOMED". I feel like I've travelled to a galaxy far, far away. News reports, commentary, doomsday prophecies, retrospective chart diagrams.....Yes, I could probably mimic them all. Let's line out some known facts, and you can determine for yourself:

  1. We've had the largest debacle in history of global finance. People spent a lot more than they could afford, and everything came to a screeching halt. (Boy, that's a shock).
  2. Our government is flushing lots of dollars at lost causes. (Let's give more to BK companies, ok?)
  3. Unemployment is bad...not horrific, but bad. (So much for arguing with my boss, right?)
  4. The individual savings per person is going up. (This is debatable...I have yet to escape crowded Walmart without being hit by another buggy)
  5. And here is a shocker.....Markets go Up and DOWN.... (Really? You've got to be kidding...)

As a disclaimer, I am not a financial guru. I cannot tell you with all the matrices, charts and graphs, financial lexicons and jargon what the truth of all things equate to. Here's a startling thought though...Where were all these knuckleheads 3 years ago? How about one year ago? Did warning bells not go off then? Did we not have all the computer models and pretty spreadsheets to tell us we were in for a near collapse of our economy?

So we give doomsday reporters more steam and fuel their fire. Here's startling thought number two....What season are we in? Do we expect dramatic recovery while people are trying to scrounge enough money to take a small vacation with the family? Are we that naive to think that summer isn't a slow time in the market? Even stock traders take vacations....

I had to get this out of my system, but truth be told, be careful and take profits. I recently lost a good run...I bought BIEL at .011 and sold at .015, only to see the stock climb to .049. I lost a few hundred percent, but still cleared profit. Pennies are taking steep declines before they reach the resistances, and it's hard to tell what will continue and what won't. I have been subject to the pump and dump too many times, and the hopes of that future spike to previous levels never seems to come, nor will it come. Accept that, and you'll make money.

Pennies and Pinkies are not usually susceptible to the fluctuations of the Dow and Nasdaq, but recently they have been. So, I'm not risking my profits...you shouldn't either. Last week was somewhat of a sideways week...I expect July to be a great month, despite the doomsday messages going forth.

 

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