Trading Now

Trading Now

Friday, August 7, 2009

The Illusions of a Stock Market Junkie

*unemployment is up for July and all is right with the world. Somethings to consider:
Media and banks said in 2007 AND 2008 we have no subprime problem.
The Great Recession has given us a bear market: 14000 to 6500 to 9410 today.
Unemployment rate 9.4%
Mortgages are underwater and foreclosures still rising and on Prime borrowers no less
PE ratios in typical bear markets: 5 to 10%. PE today: 13.5 to 20%
Insiders are selling TODAY: if their companies are in such great shape going forward why aren't they buying their stock?
Who is buying stocks then if volume so low and so much big money on sidelines? Mutual Funds

via ZeroHedge

market continues to rise on such poor volume

*I have little choice but to stay mostly in cash. Cotton Candy is not one of my favorites thank you very much. People laughed when I told them to buy Ford.

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