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January 31, 2010
Edited: February 3, 2010
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Update Feb 1 - I am adding QCOM to buy list. i will be buyer of options for upside. I started buying today in personal account. I mentioned QCOM in this blog on week end.
The market is bearish on the stocks price volume action.
When the stock market is going down, most of the folks will stay away by saying that they will get lower price tomorrow. Is there an iron clad assurance that you will be able to buy lower in next two weeks.
If you belive so, then stay out and wait for better signals. There is always a slim chance that you may end paying more for the stock you wanted to buy. Smart money normally draws a line in sand and decide what they consider a reasonable price for a given security.
Example: QCOM - In two days 240 million plus shares changed hands - meaning bought or sold. For every share there was a buyer and there was a seller. Sure some shares were bought and sold by day traders two to four times. Allow 20% for the day traders. it still means at least 100 million shares were taken out and more or less put in the bank valut by Mutual Funds for some time. If you own a Mutual fund, you may have a tiny share of QCOM in your portfolio.
For the same reason, each stock can a weak buy or strong sell. If you can not decide - then the best bet is stay out and let the dust be cleared.
I am quite sure a number of folks are going to different web site and trying to find out what the so called experts are saying. For every seven opinion there is always three who will oppose it. When bears out number bulls by wide margin - just close your eyes and start putting 10 to 20 of funds to use.
I found an interesting article after writing this blog and adding link here.
http://randomroger.blogspot.com/2010/01/bull-market-bear-market-complicated.html
Another view says Jan. 29 (Bloomberg) -- U.S. and Canadian stocks are likely to gain more than 20 percent this year as earnings surge and the Federal Reserve holds off on raising interest rates, Desjardins Securities Inc. strategist Edward M. Sollbach said.
http://www.bloomberg.com/apps/news?pid=20601082&sid=aiMnu_hRpP7A
