Fear Grips Market Stocks Fall Hard
Posted on Wednesday, February 18th, 2009 | In Market CommentarySelling pressure proves to be too much for the Stock Market as prices fall on higher turnover.
Every index had their short term trend lines broken on Tuesday as more fear about banks and the health of the overall economy gripped the market. The market is clearly foreshadowing Obama’s New Deal III will fail and its consequences of its existance will be great. Precious metals once again were the highlight of the day as flight to quality now flies to gold and silver. It is said the market looks 6 – 12 months in advance, Tuesday’s action spells doom and gloom for the US economy at the pace its going right now.
There is one stock out there that I believe looks halfway decent: SXCI. It had a pull back of 4% on lighter trade. Although its a large % pull back the low volume and manner it fell, orderly if it could head sideways a few more days would be a great candidate to get long. With that said, it is not the type of market where you would want to risk more than 1% of your capital on this stock. Far too many times have we seen better than average setups FAIL!
Gold, silver, and platinum continue to be the place to be. The massive spending and printing of the US Dollar only accelerates the crash of the US dollar. There hasn’t been this type of spending and printing in human history. In prior times, all fiat currencies fail after spending and printing of “monopoly” money. Only this time, we are doing at an unprecendented pace. This will lead to a massive rush towards precious metals as they are foreseen to have instrinsic value. I am long UGL and would like to get long AGQ and PTM.
Precious metals and Cash there is no need to try to pick bottoms in this market.
Market Speculator
Positions: UGL
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Last 5 posts by Market Speculator
- Quality Growth Stocks Lead the Way as Stocks Advance in Mixed Trade - June 2nd, 2009
- Re-Inflating the Bubble; Inflationary Pressue Lifting Stocks - June 1st, 2009
- Treasuries Begin Their Decline Striking Fear into the Stock Market - May 28th, 2009
- Follow on Twitter and Seeking Alpha - May 28th, 2009
- Sipping on a Cup of Coffee Deciphering Whether or Not The Stock Market is About to Make a Leg Down - May 11th, 2009
 About Market Speculator (http://market-speculator.com)
Market Speculator began his market career shortly before 9/11/01. The methodology he uses comes from the greatest stock market traders of all time; Livermore, Darvas, O’Neil, Dryfus, etc. Decision making is based on price and volume while stock screening is done by growth in fundamentals. Much like William O’Neil’s CAN SLIM approach to investing Market Speculator focuses on a narrow amount of stocks and lives by cutting his losses early. |
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February 20th, 2009 at 4:02 am
Investors have lost trust in the market and the lows we’ve been seeing reflect that.
I agree that precious metals are the place to be. I think they will be the place to be for at least the next several years. The government is printing and spending money like it’s going out of style. This, along with the many other bullish factors rooting for precious metals give the bull plenty of room to run.
Gold, Platinum, and Silver have all recently broke out of their price bases. Now would be a good time to buy on dips as the precious metals bull market is just getting going again. Thanks for the article.
Happy investing.