Archive for the ‘2009 Recession’ Category

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Markets Plunging All Over the world – Time to bet down? $SDS

Wednesday, July 7th, 2010
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Its very depressing to see your portfolio in red every day five times a week! Obvious question in everyone’s mind right now is what to do! People have the tendency. There are several ways to make money in a bear market, some of them are listed below:

Short stocks: Shorting can be very profitable in a bear market like this. However keep in mind to be vigilant. You need to always remember that MOST people lose money in trading, specially in their first year of trading. So if you decide to short a stock, be sure to keep an eye on the stock price on a regular basis. One good news is all it takes for the market to rally. If you see signs of bounce play, thats a sign for you to check out!

Invest in Reverse ETFs: These ETFs are inverse of the popular stock indexes. Shares of these ETFs are traded just like any other share. SDS is a very popular reverse index ETF to look at. Its actually double inverse of S&P 500. So it doubles the drop in the S&P for you. You can make really good money if you play it carefully. Again remember, market is for losers!

Buy at dips, sell on news: Thats the old tested techniques. Buy after a stock with good fundamentals has dropped in few sessions and see on the immediate bounce. Do NOT hold stocks for too long when market is volatile.

Cash is the king: Be sure to keep some cash in your account so that you can use it when the unexpected happens and you have a lifetime opportunity to go “all in”!


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Posted in Aftermath of Stimulus plans, Learn how to invest, investing stocks and bonds | No Comments »

Are we headed towards Dow Jones @ 11000?

Thursday, June 17th, 2010
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After almost a month of bear market, it seems like we are heading towards the green land again. No blood on the street does look awesome. However investors are still being very careful. Job loss claims seem to be rising once again; that could be an indication of economical growth slowing down again!

Europe seems to be coming together with Spain being able to pay their debt on time. BP’s fate has been decided after them depositing 20B USD in escrow account. There is a good chance that BP will get bought over by a large oil firm. Their stock has gone down almost 50% in past few weeks, which does not reflect nicely on their cash position either after cutting out the scheduled dividend.

There might be some more sell off planned for next few trading days but overall market sentiment seems to be good. That is purely based upon strong US economy indicators such as retail sales.

Lets keep cash in the account to take advantage of any unforeseen dips in the market! Be sure to chase the solid stocks with promising EPS. This is the time for strong companies to become even more stronger.

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Posted in 2009 Recession, Europe Crisis, Is it time to invest? | No Comments »

With Asian Markets Shooting Up, can we hope for a respite – June 2010

Monday, June 7th, 2010
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With Asian Markets shooting up in early trading, can we expect some quick respite from the free fall that we experienced in the past two trading sessions? At the time of writing this article, Nikkei 225 is trading 19.66 points up which is 0.21% up. BSE Sensex is 81.03 or 0.48% up. That is definitely a bullish sign.

However I would not start pumping money just yet. What happened in the US market in the past two sessions is alarmingly scary! On Friday markets fell on the news of weak hiring in May. Monday morning markets opened slightly up but then towards the end of the day, markets dipped into red zone. That has been a pattern of late. Many investors have recognized that pattern and they secure their profits in the early trading and sell off in the afternoon if the market shows bear signs. That in turn has been driving the markets even more.

European crisis are supposedly the biggest culprit in driving the markets down. I am sure US investors would let Europe sort out their own problems. However the media is not allowing people to focus on the right source of info. US has been showing signs of improved economy, however due to media instilling fear in people, markets are not able to find a solid support!

I am about 40% cash right now and depending on the market direction, I might get in sometime this week or next week. But I feel media is too doing too much damage to investors’ confidence by publicizing negative reports every day! So its better to stay off the front line and watch the fire drill.

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If Markets are being manipulated, we will see Dow Jones Rise tomorrow

Sunday, June 6th, 2010
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If you visit any finance news tonight, everyone is talking about how the markets are tanking across the globe and how its a beginning of a new stock market collapse. I personally will not say that just yet. Even WSJ has posted an article minutes before explaining why we should not give up Europe just yet.

WSJ Story: Do not Give up on Europe Just yet

The fact of the matter is that rest of the world depends on US stock market, specially the Asian markets. Since US markets crashed on Friday, all the other markets are just reacting and following the suit. If  the markets are truely being manipulated, we will see green in US market in the morning. First hour or so might still be in red but investors will probably start picking up cheap shares in early trading in the morning which will push the market up. Well thats just a theory, lets see what happens when the market opens at 9.30AM

Stocks to watch for Bio Sector: $DCTH, $CXM, $HNAB, $QCOR, $PGNX

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