If it walks like a duck, quacks like a duck and looks like a duck it must be a duck.
In the stock market if there are more buyers than sellers, more stocks are going up than down and the trend of the general market is higher it must be a bull.
Not a duck, not a squirrel, not a possum and especially not a bear. And everyone likes bulls better than bears in the stock market.
The mix of news that feeds this bull is indeed strange as is the economic background. Each day there is a report of "better than expected" earnings, employment, confidence, something. The general background tone is quite negative with huge looming long term deficits yet the market keeps chugging away higher and higher. I like that.
The talking heads on CNBC-TV have been jawboning a bull market all the way down from NASDAQ 5000 and now they have turned cautious. Yes, some of them are now cheerleaders for the new bull (if it is a bull and not a duck). One of them said the market is undervalued. At 33 times earnings? The mean P/E ratio (Price Earnings) since 1800 has been about 14 or 15, but "this time it is different". Really?
There may not be any logic in the market going higher, but I don't need logic when it is going up; I just get on board for a profitable ride. My regular readers know I believe in the trend and right now the trend is up. Don't ask me when the trend will end. I don't know, but I will be watching what Mr. Market is telling me and act accordingly. As long as it has four legs, horns and moos like a cow I will stay with it. When the tune changes - goodbye.
The basic question remains. How do you know when the trend changes? Don't ask your broker as he doesn't know; however, there is a very simple and accurate method that many people have used and I also use to know the general direction of the market. If you have a computer or you can use the one at the library you can go to www.bigcharts.com and type in the symbol for the S&P500 Index. It is SP500. You can then put in the value for the number of days you wish for the moving average which in this case is 200. Click and you're done. This is an excellent way to find the trend of the market. When the price of the S&P Index is above the 200-day line you are a buyer and when it falls below you sell out and put your money in cash. Very simple.
Right now there is a loud mooing sound. When you hear the growl you will want to run for cover.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Copyright 2005
http://www.mutualfundmagic.com; 1-888-345-7870
weekly home cleaning Highland Park ..Last time we looked at the real performance of the... Read More
Where is the beef? Or maybe it should be where... Read More
There are red lights, green lights, blue lights and spot... Read More
I am sure that if you have a brokerage account... Read More
Economists know more about how the fragments of society work... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
I go to the Money Show every year to visit... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
You have a lock on your house. You have a... Read More
Most advisors will tell you they can beat the market.... Read More
We all know the expression, "My country, right or wrong",... Read More
For years investors have been taught to look into the... Read More
Since I can remember, and that's a long time ago,... Read More
When it comes to 401k's there is an overabundance of... Read More
I mean it when I say that. While plastic silverware... Read More
A common problem I often see when working with living... Read More
A 'stock option' is a contract between two parties giving... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Jack and Jill went up the hill to fetch a... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
When you become interested in a stock or mutual fund... Read More
This is the continuing story of our two imaginary traders,... Read More
If you are serious about making and keeping money by... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
A few years back ? it seems like an eternity... Read More
whole house cleaning Park Ridge ..If you were to find that you had some severe... Read More
Investing in long-term financial vehicles give you the most gains... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
When you become interested in a stock or mutual fund... Read More
In 1960 an engineer working for a watch company in... Read More
When you invest in the stock market for ever-increasing cash... Read More
What are you thinking when it comes to your no... Read More
Every day I hear from the "experts" on CNBC-TV and... Read More
As an investor you will want to check out any... Read More
Are you one of those many people who dread reading... Read More
This is an extract of an article which was first... Read More
Now that you have some money burning a hole in... Read More
What can I expect to make my first year of... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Spread trading is a technique that can be used to... Read More
This is a rather simple strategy with which I am... Read More
If you go to Haiti or other places in the... Read More
Congress recently passed another new law that is supposed to... Read More
Do you have a nest egg? You know, a place... Read More
I would like to share with the reader an article... Read More
Forget making a profit; instead focus on the income provided... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Everyone who invests in the stock market wants to be... Read More
Stocks & Mutual Fund |