This is a one way ticket that takes you on a wonderful journey into the vast world that is the stock market through my eyes, my point of view.
That I currently still like: AUTH, BIOS, and II. All three of these stocks have been quietly accumulated through this market mess and still possess high quality chart setups and technical patterns. If I had three (and only three) stocks to choose from to play, these would be the ones.
posted by Nick M. @ 8:05 PM
Hello and welcome to my blog. My name is Nick and I am a recent graduate of a top research university. I currently hold a BA degree in Psychology. My main interests are industrial/organizational psychology, HR management and of course, securities and the financial markets. I became interested in trading and investing in stocks a few years ago by pure chance and curiosity. After learning some of the basics in 2003, I began to trade in full force in 2004. Although I've been trading for only a few years, I have learned much about stocks, and analyzing charts in this relatively short time span. My experience and chart reading skills are my edge in successfully navigating the stock market. My strategy and discipline is a blend of trader and stock picker. My style of trading has helped me find some of the current markets top winners in their infancy. In addition to my own personal trading and investing, I also manage assets and portfolios for close friends and family. My goals are to continue to improve and refine my trading/investing strategies in order to further enhance my performance in the market. Eventually, I would like to establish my own investment/asset management firm.
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4 Comments:
Nick,
Have you previously encountered this kind of market situation in the past in your trading career.
I was wondering what would(events or news)bounce back the market?
thanks
-bindoo
Bindoo,
Yes I have encountered a similar situation. Although the catalysts may be different, back in June-July 2006, the markets were ready to plunge and instead, they fixed themselves and continued their uptrend. Although similar to the July 2006 incident, the current dilemma looks a bit different. For one, there wasn't that much money (investor and institutional money) pumped into the markets during June 2006. Since then, the markets have been flooded by new money (over 20 Trillion), and there are plenty of people who want to take profits from dry bulk ship, fertilizer, solar and China Stocks.
As far as what would save the market, there are several scenarios to watch for (since we have several problematic situations).
Falling Dollar: Maybe an outside country may step in and help the ailing dollar by increasing their interest (and position) in it.
Fed may step in and pump more money into the economy. They have done this before to save the economy from a full-blown recession.
FED may also decide to cut interest rates. This can ease some of the pressure.
Strong Interest in a new sector or industry may emerge. Bull markets are run on leadership industries and sectors. Without them, there is no uptrend.
These are several of the scenarios that are possible. For all I know, the markets may just bob and weave below the 50-day MA for a little and then climb back up and restart a new uptrend. The best advice that I can give you is to sit tight and not over trade or pressure yourself to trade senselessly. The best secret for success as a trader is patience, determination and perseverance. For now, it is time to be patient and observant of what is going on so that one can take advantage of buying opportunities when (and if) they arise.
Nick,
Thanks for your insight. I really appreciate it.
Good luck with your positions.
-bindoo
No problem, Bindoo.
Good luck to you as well.
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