No follow through Monday in the Stock Market. Today???

Monday was a consolidation day in the stock market after a nice move to the upside on Friday. My view is we get one or two more days of this than barring a meteor strike we move to the upside.

I do not think it’s going to happen though for a day or two as sentiment is still a bit bullish and the Nasdaq is overbought. When that gets worked off look out shorts!

That is the way I am going to trade this week. I am looking to get long into the potential move as I did for Friday’s move. What was nice about last Friday is that I made more in the consolidation phase leading up to Friday than on Friday itself.  Great when that happens but I take that as a bonus for being disappointed as opposed to any genius I may have:)

Pre-Market the index’s are up slightly about an hour before the open. I am still long gld with a small basket of stocks. I have one stock on the short side.

One thing to keep in the back of your mind is what is going to happen to the markets when 1. Countries decide to change course on easy money and 2. when countries run out of money to prop things up.

This is no small worry. I doubt if Venezuela with all of its oil ever thought it would be in the position it’s in today.  It was just yesterday when Chavez was not only opening gas stations here in the U.S. but also giving away free gas to U.S. Citizens.Now many in their Country cannot find food.

This is a red flag as to what can go wrong if our leaders do not get their act together. What we enjoy every day as a given can be lost. History has taught us that lesson.

I only mention this as if you’re a buy and hold investor who pays no attention to political and economic issues, your likely to have a big surprise in store for you in the future. That is why it’s imperative to find at least one “consultant” who knows exactly what the issues are and also how to interpret these issues as it relates to investments.

If I had to pick one site to read weekly for that perspective it would be    http://dashofinsight.com/.

Each weekend the author of the site Jeff Miller writes a column that in detail discusses the state of the market along with the issues and how they might affect the markets. It’s a free site (a rarity these days) but as far as I am concerned its the best at what it does.

So if your trading or just want to keep up on the markets and the issues this is a must read. Also in case you are wondering I do not know Jeff Miller nor do I have any connections with him or his site.

I merely am sharing what I feel will help you out along a tough journey investing in the markets.

As always if you have any questions feel free to drop me an email. I always enjoy discussing the markets along with handicapping sports!

Good Luck Today

RickJ

RickJ’s Handicapping Picks

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