What Now for the Stock Market? Follow up
The stock market took another fall today; and breaking the 8240 level on the Dow Jones Inudstrial Average could signal a further pull back in the markets and could actually help the mortgage market and rates.
I wanted to keep pace with what was happening in the markets; this is just commentary but worth considering. My last post mentioned Gary Savage and The Smart Money Tracker; his latest comments will bring furhter light to what may be unfolding. Remember, the Dow may be breaking down, however, the broader S & P Index is still holding ground.
Here is a comment from Gary Savage:
“The bulls need 875 to hold. However we are so early in the daily cycle that it would probably take a miracle for this to not breakdown. Now here’s what I suspect is going to happen. Most of the shorts are going to cover at 875 looking for a bounce. Tell the truth, I know a big chunk of you are thinking along those lines.
Now maybe the market bounces at 875 and maybe it doesn’t. Either way I’m not going to lose my position this early in the cycle. First off if everyone is thinking along those same lines then no one is thinking. Where would I be if the market just slices right through that level and keeps on going and I did something stupid like losing my position on the chance that the market would bounce? As I said before, I really don’t want to make stupid mistakes anymore. Believe me, I’ve made enough stupid mistakes for 10 people in my first few years investing. I think I’m over my quota.”
Gary, is what his site is all about “common sense investing”. I hope you all understand the intent of these last few posts. This is just about trying to make you aware of some potential pitfalls; this is not investment advice.
Investing in the financial markets can involve considerable risk. Past performance is not necessarily an indication of future performance. The information included in The Smart Money Tracker and The SMT subscribers daily updates is prepared for educational purposes and is not a solicitation, or an offer to buy or sell any security or use any particular system. Information is based on historical research using data believed to be reliable, but there is no guarantee as to its accuracy. G.D.S L.L.C., nor Gary Savage, do not represent themselves as acting in the position of an investment adviser or investment manager for funds that are not under their direct control and fiduciary responsibility. GDS L.L.C., Gary Savage, will not provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio or securities, transaction, investment strategy or other matter. From time to time, GDS L.L.C., Gary Savage, may hold positions in securities mentioned, but are under no obligation to hold such positions.
