You may be concerned about the stock market now that Barack Obama has won the election. Some people believe that Republicans are better for Wall Street than Democrats are. But history shows that the market has actually performed better under Democrat presidents.
But a waiting place isn’t necessarily a bad place to be. Especially when it comes to your investments. Right now, I feel like I am in a waiting place. Going through my charts each morning, I am finding it difficult to find trades that I am willing to send to my K.I.S.S. investment service subscribers. My gut tells me that we are about to see a huge rally in the overall market – and with the number of stocks that are oversold, it is difficult to recommend put positions right now.
On a recent business trip to Atlanta, I was able to spend time with another seasoned trader. You will be hearing his name in the coming months – but for now, we will just call him T.G. He and I were discussing the present craziness in the market. And we shared with each other the actions we take when things get like this.
Unusual markets call for unusual thinking. What do I mean by that? Over the course of the last few weeks, the market has been more volatile than at any time in my experience. With emotional trading at a peak, the moves in the indices have been incredible.
Trading volume can be used as an indicator of changes in the market. Volume can tell you if a trend is likely to continue… or if it has run its course.
The House of Representatives voted against the $700 billion bailout plan for the financial sector. The bailout was very unpopular on Main Street because too many viewed the bill as a bailout of Wall Street.
A few months ago, my wife and I celebrated our 15th anniversary. Over the years, I have tried to stick to the traditional gifts for anniversaries. For year 15, that means crystal.
The stock market is always driven by news. A better-than-expected economic report sends the market higher. An earnings warning from a big blue-chip company sends the market lower.