Has the Market Bottomed?
September 19, 2008
No. The new ruling which bans short selling on hundreds of companies across the market has taken us on a little ride – one that promises to be short (no pun intended). We are in unchartered waters and an era that will certainly be looked back at in history and lectured about in many of our business schools.
The gains we saw on Friday were incredible. What else can I say. Record gains for the TSX and the DOW created quite a buzz on Bay Street and Wall Street with investors wondering if the bottom has past us. From what I can tell, it hasn’t and that pleases me to a certain extent. I’m one of those optimists who craves moments like Monday, when everyone is panicking and selling out of fear.
Before August had ended I set up a watchlist for all the stocks I wanted to take a position in. I set low-ball price targets for 10 stocks (typically 25% lower than what they were trading at) and promised myself I wouldn’t buy them until they hit those price targets. If they never dropped to my desired price, then so be it, I would have to pass. After Tuesday, 6 of the 10 stocks I had on my watchlist had dropped below my 25% low-ball target. Do you think I took a position in any of them?
I didn’t. The reason I broke a promise to myself is because I see things getting a bit worse still. I saw Friday for what it was – a short squeeze. This created a
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Re: Has the Market Bottomed?
I agree, the prospects of comoddities look great. Which specifically are you looking at . Gold looks nice.
Re: Has the Market Bottomed?
What's realy interesting is that the market has all of a sudden figured out that materials and commodities are the safe things to hold rather than bank paper etc. I personally think that commodoties stocks have bottomed and are a great buy since demand will continue no matter what happens in the US. Sure the USA is a big market and what happens there influences the world economy but what they just proved was that they still have the clout and will power to print all sorts of money for consumerism to roll on, albeit not as smoothly as we would all like . All that to say I added to my commmodities portfolio last week.
Re: Has the Market Bottomed?
Google is indeed attempting to take over the marketplace for communication. They own the internet and the internet is the greatest communication tool ever invented.
Re: Has the Market Bottomed?
Hi Aaron,
Well, it looks like there may be reason for optimism again. The juniors could fly from here with a little luck. Keep your eye on Newmac again, I think good things are in store for it. News should be out next week and a lot of behind the scenes activity is taking place.
Chiro.