Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Throw the Bums Out Thursday

Stock-Markets / Stock Markets 2010 Sep 16, 2010 - 12:12 PM GMT

By: PhilStockWorld

Stock-Markets Best Financial Markets Analysis ArticleThere’s only one thing voters hate worse than Democrats:
That is, of course, Republicans. The latest NY Times/CBS News poll found that, while while voters rate the performance of Democrats negatively, they view Republicans as even worse with 63 percent disapproving of Democrats and 73 percent disapproving of Republicans.  Still, the prevailing "they all suck" attitude is not good news for the Democrats as they have the most seats up for re-election and over 63% of the voters are pretty much determined to vote for "the other guy."


I would propose instead that we begin a national campaign to elect "None of the Above" as a write-in candidate.  I don’t expect it to change much but it would force a lot of run-off elections and would send a real message to Washington that we are sick of the nonsense, that we are "as mad as Hell - and we’re not going to take it anymore."  If you watch this video clip from 1976 (click picture) you’re realize how little progress we’ve made in 35 years of American politics.  If only we’d taken Howard Beale’s Oscar-winning advice at the time and gotten off our sofas and actually said: "I’m a human being, goddammit! My life has value!" - maybe we could have done something about the Corporate Kleptocracy this nation has morphed into.  Now, instead, we are once again asked to flip the switch for Republicans or Democrats and, if the candidates weren’t labeled, it would be very hard to tell most of them apart.

In many election cycles, voters readily acknowledge that they are dissatisfied with government or Congress in general, but they tend to have a stronger connection toward their own representative. That is not the case this year, with 55 percent of voters saying it is time for new leadership and only 34 percent saying their lawmaker deserves re-election. It is a historic high for a question asked in each midterm election year since 1990. Of course, the MSM plays a huge roll in this as 8 out of 10 Americans rate "the economy" negatively but, when asked about their own family’s financial situation, 6 of 10 say it is the same or improving.  So 40% of the people feel their own situation is negative but 80% think it’s negative for everyone else.  Gee, I wonder where they get that impression?

Voters do not perceive Republicans as having better ideas and disagree with them on the biggest economic issue of the campaign — whether to extend the Bush-era tax cuts for the wealthy — a sign the party has no real advantage on key pieces of their agenda, which makes it more necessary to run as a generic alternative to the party in power. The economy and jobs are increasingly and overwhelmingly cited by Americans as the most important problems facing the country, while the federal budget deficit barely registers as a topic of concern when survey respondents were asked to volunteer their worries.

All this dissatisfaction with the economy and our leaders does not bode well for the markets as we test the top half of our range at the 5% rule.  For the 19th consecutive week last week, investors continued to dump mutual funds in favor of bonds with $10Bn of outflows for September alone.  As I’ve been warning Members during this rally, the volume has been too low to take it seriously and we are not making serious breakouts of our key levels yet:

We’d love a reason to get more bullish but, we did our bullish shopping when bull was out of season and got such good bargains that it’s getting hard for us to pull the trigger here, at what may be the top of a tight range that may last into earnings season.  On June 7th, we initiated the Q2 Buy List and on June 11th, the market was so low and (we thought) so wrong, that we set up a virtual portfolio aiming to turn$10,000 into $50,000 by Jan 21st (currently $24,275) and the dip at the end of June led to us Rounding Out Our Top 20 Picks on the 26th but the market wasn’t done "crashing" so we took 9 Fabulous Dow Plays Plus A Chip Shot (WFR) on July 7th.

On August 29th, we got another dip but not as good as the last one so we went with the strategy of "Defending Your Portfolio With Dividends" and, on September 3rd, I decided we may have been a little too conservative as we looked like we’d break over 1,070 and hold it so I added "September’s Dozen," which were 12 more aggressive trade ideas for Members who may have felt they were being too bearish as we were breaking up.  So that’s where we stand and it’s important to keep that in perspective for new Members.  As I said to Members in Tuesday mornings Alert:

Remember - these are ideas for hedges to cover long-term BULLISH positions (see Portfolios Tab).  We end up talking a lot about bearish plays as we move higher but keep in mind that we are still generally bullish in our outlook but markets don’t go straight up and there’s no reason not to try to take advantage of the dips along the way.

So, at thin lines (2.5%) we’re willing to be a little more aggressive but thick lines (5%) make us need the market to PROVE it still has game above our levels.  There has been little to excite us on the "buy and hold" side of the game this year but we’ve been fortunate with out timing in our bottom-fishing expeditions but the real money has been made on the dips as we’ve paid attention to our ranges and taking those high-reward covers at both the June and August tops.  Now is certainly the time for caution and we’re using TZA, SDS, DIA and SQQQ as various hedges (with option plays, of course) to cover the above-mentioned bullish plays.

Our HOPE is we consolidate near the 5% line into earnings (and we have FDX, RIMM and ORCL today) and that earnings are good enough to give us reason to look up to 1,200 again but hope doesn’t pay the bills so we watch and wait - PATIENTLY for clarity.

Asia did some stuff today and Europe did some stuff today but none of that matters as we have our usual 450,000 lost jobs for the week today and we’ll get the Philly Fed at 10 (NY Fed was not so great) and tomorrow is CPI and Michigan Sentiment (not sounding good based on NY Times poll above). FDX had good numbers and raised guidance but missed by a penny and are down 2.8% pre-market, which will ding the transports at the open but I love them at $80 if they get that low.

Tomorrow is quadruple-witching end-of-quarter options expiration day so we could be up or down 200 points on the Dow or, more likely, flat as a pancake but next week has plenty of excitement with housing news (boo!) the FOMC Rate Decision (0.25% forever!), Leading Economic Indicators and Durable Goods (boo!) on Friday to put a real stake through our hearts ahead of GDP the next Thursday.

In other words, after careful consideration, I think it would be prudent to maintain disaster hedges through the weekend.

Let’s all be very careful out there!

By Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

© 2010 Copyright  PhilStockWorld - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in