Having Trouble Going Down

After losing a 2oo point gain on the Dow Jones, the stock market rallied late to finish the day up almost 100 points.  We had some surprisingly good economic data this morning that really got things going.  The sellers had their chance to push it down and really deflate the bulls.  But, they failed.  I think this is yet another example of the stock market getting stronger.  It’s like Timex.  It takes a lickin and keeps on tickin.  There was a report last night showing short sales are rising.  Was that evidence the lickin would come in soon?  To me, this is bullish because it’s more people that can be converted and will have to buy at some point in the future.  There are a ton of people doubting this rally.  That’s like adding gasoline to the fire.  Doubters are people that don’t own stocks so when they change their mind, they buy.  Now, this certainly isn’t a perfect rally and a selloff would be healthy as I’ve said many times.  But, when it won’t sell off or let you in, you need to pay attention. 

If you are still sitting there with 100% cash doubting this rally, I’d be averaging in.  That’s a safe way to participate.  If it falls quickly and resumes the uptrend, you can add more.  If it keeps going, you just keep averaging in using some methodical process (i.e. so much every few days).

The financials were strong again today probably because maybe the economy is stabilizing.  In stabilizing, I mean it’s getting worse but not as fast.  In other words, the rate of decline is slowing.  In addition, I think investors like this PPIP plan and as I said on my radio show today, it’s the first plan that has some incentives and lets the public get involved.  We’ve gone over what public means but it certainly is attracting the big boys because it’s such a great deal for them.  Incentives.  Give us incentives and the stock market will react favorably.  If the administration would get this point, maybe we’d have an even better stock market. 

The internals were pretty good today but as always, don’t let your guard down.

Don’t forget to check me out on CNBC Asia tonight at 6:10 p.m.-6:30 p.m. CST.

This post published at www.karleggerss.com

None of the content on this page can be reproduced without the permission from Karl Eggerss and www.karleggerss.com

Advertisements

0 Responses to “Having Trouble Going Down”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




KARL’S TWITTER (www.twitter.com/karleggerss)

March 2009
M T W T F S S
« Feb   Apr »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

%d bloggers like this: