Today's selling just
confirmed my suspicions as per my market comment from
yesterday. It is impossible for the market to have any
sustained upside until the financials join in. They do
not need to lead, but they must definitely stop falling.
I also read today a great article by Jeff Miller over at
www.seekingalpha.com about
what it takes to be a successful investor. His
article, combined with my article on
treating your investing like a business, makes for
compelling reading.
Below is the past 10 days.
Predominantly lower highs and lower lows. Today,
yesterday's rally was wiped out and the S&P500 ended up
lower and closed near those lows. The March lows are
getting closer but the 200 day has not yet been broken.
Once that happens I believe there could be more selling.
The past few weeks has seen some of the higher volume
levels for the past 12 months. This could be a good sign
that many of those who want to sell, have sold, or it
could be bad sign that the market is going to drift
lower.
SUMMARY
Just remember that selling naked puts on stocks you do
not want to own is a bad idea in a down market. Stocks
can fall further and faster than many investors realize.
But for myself, I look forward to fire sale prices,
however many stocks are nowhere near fire sale prices
yet. I believe there is more selling ahead. I read an
excellent article today discussing why the European
Union will not allow Greece to default or leave the
union. It made a lot of sense, so who knows, perhaps
things will work out in the end. I just never can see
how piling more debt on to debt is a solution.
.
