Friday, March 05, 2010

Is the stock market trend up this week to be believed?

This week the markets have moved up steadily each day. The guests on CNBC and other networks are declaring once again things are getting better and while the jobs picture is still not recovered, we are doing better than we were a year ago. My goodness, with all this good news and the trend now going up in the markets, I should probably become a Bull and buy here, right? Wrong!

If you look at the chart above, the Volume is less than it has been when the market was going down just a month ago. This is not convincing to me. In fact it validates my conviction that it is an old con game designed to drive the market higher by enticing others to feel safe in the market only to have them get out at the top and the average person gets shafted again. Can the market go to 11,000? Yes it can. But is the enticement of a gain to the upside of the 500 points worth the risk of the market dropping 1000 -2000 points? I say it isn't, but heck, that's just me. You do what you want.

I am planning on doing a post soon with many charts you most likely haven't seen that hopefully will be illuminating. They will deal with historical data of the Dow, Gold, the US Dollar and the Core CPI among some of the correlations. Stay tuned!

Labels: , , , , ,


Anonymous Anonymous said...

have been holding ZSL since beginning of year and would like to read your thoughts on where we are now. I am thinking that you are waiting patiently for the PM's to drop significantly in the next couple of months. Thanks for your response.

7:22 PM  
Blogger Minneloushe said...

I am drowning in TZA. Losing my shirt. I don't think dropping a thousand points can make up for my losses. Very depressing. My avg is now a bit over 17. I hope you are doing better than I am. / jw

11:48 AM  
Blogger Charles Amico said...

First my thoughts on ZSL. I still believe we will see Silver drop again and it could go as low as $12 or even lower. My problem is that while the Fed is manipulating the markets, I can't say when ZSL will rise. However it has been reported that JP Morgan controls about 40% of the Silver Shorts. Hopefully that will give you some confidence to stick with it.

As for TZA, it has been very painful for me as it has for you JW. I know this is no consolation, but I haven't sold one share. Sometimes I feel all alone out there. But I am convinced we are going to have a major correction that is going to scare everyone again as we hit 8,000 and break below it. Again, I can't time it any better than anyone else out there. Prechter sees us in a Grand-Super Cycle and is telling his readers to go to cash right now as it is going to be very painful for those still in the market when it corrects. He believes we are hitting up against the top of the market and can't go above it so we will be going down and this time hard. Good luck!

8:35 AM  
Anonymous Anonymous said...

would like to get your most recent take on ZSL. April 1, 2010. Are you buying more now that we are at 3.80?

8:46 AM  
Blogger Charles Amico said...

Anonymous, I am planning to buy more ZSL now that it is below $4.00 as the longer term price of Silver is much lower than where it is now.

5:29 PM  

Post a Comment

<< Home

Technorati Profile