my take on the stock market last week has changed because I started to buy and recommend some stocks, which have not done in a long time. The economy is still bad and I see no sign of a real recovery yet and certainly not a sustainable economic expansion, but it seems that the stock market is only going to go ahead anyway superior. Do not know why I need to make money. To make money in the market for being aligned with the market trend until the market proves that wrong. And it seems that the medium-term trend is up.
Being overbought does not matter now.
The stock market is entering a cyclical bull market confirmed. This is a great thing for me to say when I’ve been calling this a bear market since October 2007 and even in recent months, but last week changed my opinion. I will explain why in a second.
First you have to understand that the cyclical bull market is different from the secular bull markets, because they do not lead to all time highs, but the 8th-24th month’s big moves in a range of secular trade, as we saw after the funds in 1974 and 2002. Once the bull market ending in the market averages after returning to the secular low, or enter into any kind of lateral trading range.
In general this type of market it is difficult for investors in mutual funds over the long term, since the end of the celebration of great loss, and sometimes just sit there and make their losses when things around turn only to lose again. While the typical purchase and keep the wheels turn just kind of money is made, either commercial or the average individual to purchase than the average stock market instead of trying to buy the entire market.
I have no idea how long the bull market will last or how high is the market here.
What I do know is that it will be an opportunity to finally make a lot of money in individual stocks in an easier way of what we have experienced over the past year and a half and not worry if you do not have time not lost anything, because money is not to the market averages higher, but in individual stocks when they queue up.
There is only one S & P 500 to buy one Dow, NASDAQ and one, so yes if you want to get the ETF is easy to lose. “But the people with whom there are literally thousands of stocks to choose from and the risk reward are better for them. With the Foundation to make HUGE money you really need to go up, hence the popularity of the ultra-ETF, but with each population there is a need to make room for yourself a good performance, because when you buy the right that is easy to make huge profits on them.
Can actually see it happen all the time. For example, a stock I bought last week was attended by over 14% on Friday alone. I’m sure you can have a stock you do not have to wish you bought. Do not worry about individual stocks or losing, because there’s always another around the corner. Never pursued anything.
Consider the stock market and what has caused me to change it.
In the fall of 2007 I began to remember all those signs that were probably in a bear market. Then in December 2007 told me that the bear market is now confirmed by the 150 and 200 days moving average.
In these markets moving average acted as lead resistance in bull markets and acting as support. However, if the moving average peak and begin to decline and the market is below them for more than six weeks after he was confirmed in a bear market. In fact, this is my definition of a bear market – not a fixed percentage of the stock market has to go down, but the overall market prices of the bear, moving averages that make quite clear.
You can turn this around, but – if the moving averages are acting as resistance and then begin to stabilize and the market goes above it and stays above it for more than six weeks, then you are starting a market upward during which the moving average to become the support.
This is exactly what we have seen in recent weeks. In March I thought the low market oversold and we were going to get a bear market rally to fizzle and eventually lead to new low. Since you want to stay aligned with the trend of making big money and I thought that was still in short I have tried several times only to get left out. It also was not afraid to err on the market in the sense of "lost" at a rally, because I know that in a bull market the money is made in different sectors and stocks, and not the average of the market.
When they came to what I saw in June was a lot of sectors that may have seemed that bottomed out, but it is only going to go sideways for the next few months, if that were the case anyway. If the bull market that really good entry points then. That’s where we are at the moment actually.
Before June, but after getting arrested on the short side a couple of times I started to wonder if I was on the wrong side of things, but I thought even if we still get a good fix. The market began in June over the 200 days moving average. He said that if they kept it for over six weeks after the action would be confirmation that all the people saying we’re in a bull market is right. However, if you fall below it and then in the range of 800-850 by early August, then it would probably be wrong and we should finally expect to see minimal March test or broken in the fall.
We have an 870 to the area in the S & P 500 at the beginning of this month and it seemed that the correction may last even longer. But then the market for that level of support up and joined to make a new record last week. The strength of the rally that last week is what has changed my view of being bearish and see this as a cyclical bull market. The S & P 500 was above its 200 day moving average now for six weeks.
For me this is a moment of confirmation and the price action in December 2007 confirmed that we were in a bear market price action confirms that we are in some kind of bull market. If I have not had in March on the bottom, but almost everyone who stands in March will rise in most of the past two years all the way down to the fear of "losing."
Back in 2007, I pointed out how the moving averages were saying we were in a bear market confirms the people and had dozens of people angry and gives me a list of reasons why this could not be. Some said that the Fed will never allow the market low. They noted that they were lowering rates like crazy. People at CNBC said that just a short correction. The economy seems to be fine. I do not want names, such as threatening lawsuits against anyone who says something critical, but a famous name to say it’s a bull market, and if you sell you lose everything that a lot of people are simply afraid of death that if sold miss the opportunity to profit.
But the market is all that mattered then. And it’s all that matters now. I will not make the same mistake that the people who denied the bear market that I now. Who knows what’s up – just. Could it be that the stock market is looking at the next lower house prices a year from now going up in front of some quarters of GDP. It could simply be that the Fed is printing so much money. Who knows, until the trend is that more than is the case. There is simply more money in the stock out.
And you may not know it, but I wanted to get bullish on the market for a long time. I’ve been wanting to go over individual stocks, because the more money you can then play them in the ETF’s – that was my main strategy for making money in the stock market since the bear market began – and is now a I’m leaving.
While the market is in a cyclical bull market is the money in different sectors and individual stocks. That does not really need the market to go up a lot of money on them. It’s really hard to say how high the market can go up or for how long, but my guess is we’re going to see at least rise in the first quarter of 2010 and could easily see the S & P 500 falls in 1150 -1250 then. 1150 would be a 50% retracement of the high autumn 2007 and March 2009 low after that who knows. In the 1970s the market for trade in all the way back to their old maximum of 1974 after taking the market thanks to the enormous inflation. If we have a ton of inflation in a year or two from now something similar to the 1970s could be on the cards.
Or we could go for one year from now and then start a new bear market in a double-dip recession as interest rates climb back up.
The truth is we really can not predict such things. All we can do is to invest together with the general trend of the market and adapt when it is clear that the general trend has changed. It is not necessary to correct or tops. If you left the bear market in December 2007 that you have saved a lot of money. The same is true here, but I would not go over in March at the bottom of alignment with what the market is saying – and it is clear to us – we can still make a lot of money at least the next year long each population on the verge of beating the stock market. Some of them go up huge.
So this is now an exciting time in the stock market and should be much more fun than last year and a half. Although I personally made a lot of money last year is much easier to make money in a bull market in stocks of market timing or short circuit.
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