1/30/18: It has been a long time since Sam sent any "change" signals back to earth re the stock market. Looks like we're going to see another 5-7% pull back and test 25000 resistance. The roller coaster is already partway down the big slope. Start thinking about what you want to buy. Avoid selling if you are a long-term investor, but go ahead and sell some calls down about 3 % from current point. Of course, if you are playing with non-taxable accounts, play away if you are a gambler. Sam will be back again in 3-4 market days to help you get back up. Try not to vomit on the seats. Patience. This is end of month AND algorithm driven over-selling again.
Update 2/2/18: Whee-e-e-e. 25708 at the moment, down 475 or so. Closed at 26076 on day this was originally posted. Was 26617 on 1/26 before post. 25286 is -5% point from high. 24753 is down 7% from the high. My 25000 is mid-point or about 6%. I started some buying today on stocks that were even beyond current market stress. I'm a long-term investor and won't fret being wrong by 1%.
Minutes later....25619. You should be screaming by now. But, the bottom is near. We'll still get to feel the sharp curve ahead before leveling out and experiencing the smaller ups and downs until we return to the level wheelhouse, get on our feet, and rush off to a new ride. Maybe we should trek to the Kiddie rides or Merry-go-round. Naw. Need to clean out the guts and refill with good food once in a while. Sam did that by eating grass.
Update 2/5/18: At 24345 we are now over-sold. Start plopping your millions back into the market.
Update 2/6/18 2pm - Up + 341 and rapidly rising ... thank you Sam for your foresight.
Update 3/23/18: The bad Fed and Trade War vibes rekindled the fearmongers. Guess this wasn't completely hidden in the long-term crystal ball, but the overboard fear always hit the automatic triggers in the big-boy machines to continue the slide way down below what is sensible. They play the short-term swings and do it well causing this overreaction. Just sit it out as mentioned before. You can't fight the AI Machines that react in nanoseconds! Trump continues to "NEGOTIATE" best trade deals. You can't do this lying on your back when talking to other leaders. Let's wait and see what results come. We have a business man in charge who is flexible and intelligent. He'll cut bait and not be ashamed if he has to. As for the Fed: we knew inflation rates would rise and will again. Inflation is a result of improving the economy. Balance will level out again. The Fed's target is 2% inflation. Want to bet on whether we exceed this before they finally react and print more money? With China problems (they own many bonds and claim will not be buying more) the target is not steady I would say. However, long-term the stock market will always be better. Maybe in another 15 years I'll hide my investments in government bonds. But that will only be because I can no longer see, mentally incompetent, or the wife is already living off the trust I left her along with her weekly stipends. Life is a hoot. Smile and think of your Sam.
No comments:
Post a Comment