Not a buying opportunity

**Finance Globe** · August 10th, 2011, 06:04 AM

Regarding stocks, commodities and silver: I think yesterday's rally from the lows was robotic trading. Goldman Sachs seemed to have their computers running at warp speed to save a plummet after the FED's comments - which were not good at all. Low rates until 2013 was pretty much a promise that the economy will remain on the mend until at least then. The truth is that we were violently oversold, and were due for a nice bounce. Unfortunately, it took nearly 2,000 DOW points and RSI's around 13 for that to happen.

Until there is a confirmed bottom, the market isn't finished selling off yet. Just be careful feeding into the hype and pick your positions very carefully. A one day bounce doesn't mean anything in a sharp downtrend. Silver has 2 roles: an industrial metal and precious metal. In a downturn, silver normally gets violently oversold, which it has not because of the support in gold. However, I think we are right around the corner from it happening. My personal opinion is that this is giving everyone a short period to evaluate markets, and re-adjust for the next move lower.

**mbillal** · August 10th, 2011, 07:56 AM

i also think its better to wait and see how far stocks fall, market gets correction

**Finance Globe** · October 3rd, 2011, 08:17 AM

It's easy to see that the economy still looks very gloomy. Our government claims that they are trying to help the economy, but it seems like a big joke to them.

However, stock prices may deserve to be given a second look. Valuations are attractive in certain stocks. And prices usually do not stay this low for too long unless a darker road lies ahead.

Be forewarned that risk is still very high, and the market continues to be in a free-fall since my last writing. It's nothing to bet your house on, but sentiment is so bearish, it will take a good headline that's good for the economy to get stocks shooting back up and reversing course. The profitable concept of buying low and selling high is usually very difficult for the average investor to execute.

If you are short, now may be the time to use tighter stops, and only short at key areas if the market pops above resistance.

My thoughts on where the economy is headed:
1: We are about to enter another deep recession, or even some type of depression.

2: We will maintain about a 1%-3% growth on GDP and we are at or close to the bottom - at least short to mid-term.

Depending on where the economy is headed, this may be time to nibble lightly on good dividend yielding stocks with good balance sheets. If you think we're going into a small to a mild recession, then I believe that prices in stocks are close to fair value. A severe recession would mean that prices will likely come down further. However, if it's going to be a depression, you can only run for the hills and stay out of stocks for a while.

Lastly, if you decide to buy into this market, I highly recommend that you use protective stops and never allow a profit of more than 2% turn into a loss. Remember that bottoms usually form with very high volume to the upside, not the downside. Stops should always be raised when an equity rises in this type of market. A good possible entry could be if the S&P 500 index hits 1050 -1102.

**Finance Globe** · October 6th, 2011, 12:13 PM

If you missed the 700+ dow run. I would be careful as stocks are very overbought. As I wrote, the stubborn shorts got absolutely hammered. Be nimble and careful!

**Finance Globe** · October 14th, 2011, 01:40 PM

The markets continue to go up, up, up. We are at critical downtrend resistance, and still in a downtrend. I would be careful buying anything here until a confirmed downtrend is broken.

**Joeyman** · October 14th, 2011, 07:52 PM

Originally Posted by Finance Globe

The markets continue to go up, up, up. We are at critical downtrend resistance, and still in a downtrend. I would be careful buying anything here until a confirmed downtrend is broken.

Buy Apple?!

I bought the iPhone 4S today. We camped outside the Apple Store all-night. I gotta say it was lots of fun, a bit cold with no rain (about 45 degrees). We camped the Pioneer Place Apple Store, in downtown Portland, Ore. We got to see all the crazies and play with Apple gadgets in line. The people were amazing.

**Finance Globe** · October 17th, 2011, 06:52 AM

Apple has a P/E ratio of 17, which many investors would consider very low for a company like Apple. The recent earnings reports have been phenomenal with huge growth potential. I couldn't give advice on a stock like this, but I think that the path of least resistance is up, and am a surprised that it's not above $500 already.

However, the move up has been a near 450% gain in the past 3 years, so there's no wonder why people do sell, especially if you got in below $90 in 2008.

**Finance Globe** · October 25th, 2011, 08:53 AM

The Financial Times is reporting that Italy is on a brink of collapse. I am calling a market top here... No guarantees, but the DOW is at 11,833 as of this writing - we'll see.