Ok, so I have pretty much remained a bear all along, however…I NEVER thought something like yesterday would have happened.
What did happen? Clerical mistake? Automated Trading gone tragically wrong? Widespread fear of the EUR coming crashing down? I will be totally honest here, I have no idea.
Here is what I do know; these markets have been and are over-inflated. This “blip” that occurred yesterday may very well serve as a wake up call to a lot of people, one that screams, “We are not as SAFE as we think we are.” The recession is not over, the banking troubles will continue and jobs are still being lost at a greater rate than are added.
There are 2 motivators in the markets, fear and greed. Fear keeps money out of the markets, greed floods them with money. It is when you learn to understand what cultivates and creates these emotions that you can control your destiny within the markets.
Here is how I see it. Right now, in the markets, the rush of buying at a discount (the most recent 2008-09 lows) is over – the greed factor is waning. Investors looking back are starting to realize they are holding paper in companies that are inflated, the fear factor is building, and yesterday it made headlines. Before yesterday, questions about an over-inflated market where brushed off as “fear mongering” and “unpatriotic” now, they can be brought to light and discussed in a very serious manner. Today, I do think we will see a “dead-cat bounce” and actually make up most of what was lost, but the damage that this has done to the average, “main” street investors mind-set will eventually be crippling. Now, starts the real Bear market, a steady decline of the markets over a sustained period. We have had too much whipsawing in the past 3 years, it is time for this market to settle down and pick a direction – unfortunately the economic climate and negative political view of “Capitalism” (which, whether you like it or not, Capitalism is essential to a thriving financial market) lead me to believe that the direction it “picks” is going to be down.
Technically, the markets are just about right at the 50% Fib from the high (Oct. 2007) to the low (Mar. 2009) – this is a big area of resistance here. I have more in-depth analysis for individual markets, but overall, they are pointing down.
I have so much more that I want to say, but I need to get back to work (and my cup of coffee). I will elaborate further on individual markets in my weekly analysis that will be posted on Sunday night.
If anyone is still out there that might stumble on this blog and read it, I want to let you know that I have started a new career. I am no longer the owner of a sign company but now I am an Agent with New York Life. I am proud of my new position and extremely excited at the idea of working with the top Company in this field. To clarify, YES, I am a Life Insurance (oh noooo, the horrors!!!!) agent, but I want to make sure that people understand it is more than that. I work in the 3 financial phases of life, protection, accumulation, and distribution. I do sell life insurance, but it is a tool that helps in all three. I can help people with protecting their family in the event of the death of the breadwinner, I can help a young family save money to buy a house, and I can help as people reach the retirement age with making sure they will never run out of money. My goal is to help as many people as I can. The question becomes, can I help you? Please email me @ mdgoldsborough (at) gmail (dot) com.
As this blog continues to evolve, I will be posting still about trading and what I am doing in the markets, but mixed in here will be little financial tidbits that I hope will be of some use to my readers as they plan their financial futures.
As for my trading, it has taken a break due to the rigorous training program NYL has me going through, but it will pick up soon. I did however take advantage of the Divergence on the E/U and rode it down for a bit…I still have a short in and will add to it as it moves against me.
I feel like everytime I write a new blog I am apologizing for waiting sooo long. Hence the title of my new post – if you never know when I’ll post, then I can ambush you with a new one every now and then.
It’s also a new idea I am developing in my trading…patience, so I can surprise attack the markets. They’ll never know what hit ’em. <— note the sarcasm – “waiting” is something I have struggled with for a long time, and I feel as if I’ll struggle with it for the rest of my career. However, I would like to think I am getting more patient, even if I have not perfected it. Not much has changed with my trading, I am playing with a martingale strategy that I am starting to like, I hinted about it in a previous post here. As for my profitability, I’ve posted some decent gains for the first part of the year, but no where near what I desire.
I have started looking around for some full time employment and had a great meeting with a Financial Adviser that owns his own Financial Services Firm. I am looking to work as an intern at their offices while studying for my Series 7 and 66 as well as my Life and Accident Insurance Certificate. If anyone has info or resources for these exams, any help would be appreciated. The guy I met with’s name is Brian and he asked some very tough questions, laid some realities on the table and really showed that he was in the business for more than just money. His clients are his #1 priority and he believes that, other than family, he has the biggest impact on their lives – and because of this he makes sure it’s a positive one. I realized why I am attracted to the business, yeah the possibility of making a decent wage is nice, but I love to help people, I love to see people smile. The greatest reward for me isn’t the paycheck every week, but the satisfaction that I’ve made someones life a little better. So, long story kinda short, I am pursuing this with my whole heart and head and we’ll see what happens.
If anyone is keeping up, a quick update about my mom. She has now had 2 scans to monitor the growth of her cancer and the doctors are STUNNED!!! They don’t know why, but the cancer is NOT growing – they said that it should be, but it’s just not… Her will power is unbelievable as is her resolve to not let this beat her. She has changed a lot…her diet and outlook on life top the list as some of the reasons this cancer isn’t taking her body over. BUT I attribute it to the amount of prayer and uplifting she has recieved from people all over the world. Thank you for keeping her in your thoughts and prayers – God does and is able to perform miracles and this is what we are praying for AND SEEING!!
Thanks for not leaving me during this long period of not writing, for more updates, FOLLOW ME ON TWITTER!