The markets continued with their same mode of operation yesterday, by first dropping sharply and then climbing back to erase most of the losses. It’s been the same story as there was every reason for the major indexes to tank; except they didn’t. Higher interest rates, falling durable-goods orders and even a 5% drop in Shanghai stocks could not keep …
A Repeat Performance
Yesterday, the market staged a virtual repeat performance of the prior trading day (Monday). An early sell off was rebuffed, and the major indexes recovered their losses and managed to close around the flat line. While home prices provided some good news, economic reality struck hard with the Consumer confidence index dropping more than expected. It fell to 46.6 in …
Still Hanging In There
Despite an early morning sell off to start the week, a late rally managed to support the major indexes, which eked out a small gain for the day. A gain is a gain, and it’s amazing to me how much resistance the market has shown. Helping yesterday’s cause was a bullish report on new home sales, with the sales rate …
Reader Hedge Question
Reader John had this to say about his experience with the SimpleHedge Strategy: Having read your ‘SimpleHedge’ Strategy document, I set up my own account in late March. Yesterday, my total gain went above 5%. If I remember your approach to investment correctly, you generally recommend investing another third of one’s account once a 5% gain has been achieved. Since …
Sunday Musings: Monetary Madness
Reader Robert emailed me an interesting story written by Bill Bonner of Vancouver, Canada (sorry, no link available) with the title “Romulus, Remus, Stimulus: A Brief History of Monetary Madness.” It puts the current monetary madness in historical perspective, and gives you something to think about. Those whom the gods would destroy are first granted stimulus. When a man wins …
Using The Benefit Of Hindsight
Our International Trend Tracking Index (TTI) signaled a buy on 5/11/09, which was followed by the Domestic TTI’s move into buy mode effective 6/3/09. As is often the case, just because long-term trend lines are crossed to the upside, it does not mean all is smooth sailing from there. The markets had a 4-week sell off before resuming their respective …