If you have read my previous articles over the last couple of days I said I would be more worried if the DJIA corrected 2600 points in one day (10%) well as of today that leaves us around 2,100 points off last week Wednesdays open. I am still not in a panic and here is why:
Bulls vs. Bears
I'm looking at you right now stop talking to your dog and trying to make his head tilt to the side so you can do the Scooby Doo voice and say "Huh?"
What are they? Why do people on Wall Street keep referring too all these Bull markets, all these Bear Markets? Why do people on Wall Street go South most of the time, North every so often but never East and West?
These are terms that Wall Street users identify certain periods of time. A "Bull" market is one that is charging upward (like a Bull lifting its horns upwards no end in site) while a "Bear" market means things are on the way down (like a bear striking with its claws downward) this is also considered to be going South (the meaning by the way left for another article) and of course if some one asks you "Are you going North on this one?" and you say yes it means you are willing to buy and take a position (or back) the stock or commodity.
"1,000 Point loss William!!!!! Would you get to the point, blah, blah, blah you tell us all this stuff we could look up on Wikipedia."
I guess Mr. Richard Fader of Ft. Lee New Jersey wrote that above (look that up in Wikipedia for those of you that don't get the reference right off the top of your head).
Remember this is my blog, my rules this blog is not for the financial elite of the world it is for Joe average in the world, Joe average that hasn't ever invested in the market cause weeks like these scare you to death. You don't really understand how it works; well that's why I'm here. Or you would feel stupid if you tried but lost money. By the way that's the reason most people play slot machines in Vegas instead of table games they don't understand the protocols of how to play or how they work. If you are wondering why listen to me you don't seem like the type of guy who writes a Financial Blog, go back read article "Who is this Guy?"
http://williamswallstreet.blogspot.com/2017/09/who-is-this-guy-why-should-i-listen-to.html
Ok, in order to explain the 1,000 point drop I need to go back to the "Liars" Nightly News Reporters who report yesterday that after a 500 point drop in the Dow it: "Rallied Forward" , "Closed Sharply Higher", "Recovered Losses of the Day", "Showed Solid Strength" or other similar lies to make you feel comfortable the market has stabilized and the rich Billionaires took out a profit and its time for you to put your money back in and let them get more. Ironic it is actually a good time to buy. The reason I am saying this is we are currently in a Bull Market that began in October 2011 and although the current bubble just burst if you are one of those people that likes to follow charts like myself it is easy to see the upward trend of the Bull Market and to see the real point and value or range where the market should trading is around 22,500-23,000 meaning it is actually safe to buy for the moment the trend "Bull" should continue upward.
If tomorrow it drops and closes below the 22,500 this actually may be the signal and beginning of a Bear Market, but I do not foresee a Bear Market happening. Now the opposite of get in a buy right away everything is on sale in a Bear Market is that it takes the markets a longer time to recover like in 2008-2010 and the average Bear Market; it does last about 2 years or more. During those periods you would want to either stay out of the market and wait for opportunity at a future date or put your money in things that are relatively safe and have proven themselves over time like Washington Real Estate Investment Trust (WRE), healthcare stocks that do well in an economy that has gone South (Ha ha! Testing to see if you are still awake, or if your off watching Rosanna Rosanna Danna clips from Saturday Night Liv every letter she reads is from him always in every sketch). The real story the Liars never told you is that the DOW actually rallied over 1000 points that day to close 500 points higher, it shows that the Bull Market is still strong.
"William, you talk a big game but I'm scared what do I do?"
In the end I cannot advise you I am not a licensed advisor and every ones situation is uniquely different. No one can ever always get it right, and the oldest disclaimer in the industry is: "This is what the market has done in the past, but the information cannot be a guarantee of future events. If you haven't purchased review the picks I have given you. It is a good time to buy stocks close too a 10% sale. If you hold positions like NVDA that took a large hit or RMD since I told you about it, then sit tight you didn't buy it to own for an hour, if I bring something I would buy or my gift has a great feeling about it I will share because I think it is something to hold for at least 5 years.
Remember my Blog is for novices, and anyone interested in the market, it is to educate, to teach, to share my wealth of knowledge about the Economy and Wall Street so that you can become a well seasoned investor and go North with me as we grow our portfolios together.
Besides, my Blog is 100% free no sign up, no obligation but you can submit questions to: williamswallstreet@gmail.com, visit our web page on Facebook, or donate to williamswallstreet@gmail.com on PayPal all donations are for the sole purpose of keeping this blog running and eventually support my ability to do this full time.
I am flattered by the huge success of this blog and it's growing leadership. If you have seen the movie "The Big Short" you can go back and read my former blog SellyourhouseNewMexico.blogspot.com and see how I started talking about the 2008 collapse back in 2006 and how I chronicle my experiences while I was participating in the Wall Street Journal Dartboard Contest.
http://williamswallstreet.blogspot.com/2017/09/who-is-this-guy-why-should-i-listen-to.html
Ok, in order to explain the 1,000 point drop I need to go back to the "Liars" Nightly News Reporters who report yesterday that after a 500 point drop in the Dow it: "Rallied Forward" , "Closed Sharply Higher", "Recovered Losses of the Day", "Showed Solid Strength" or other similar lies to make you feel comfortable the market has stabilized and the rich Billionaires took out a profit and its time for you to put your money back in and let them get more. Ironic it is actually a good time to buy. The reason I am saying this is we are currently in a Bull Market that began in October 2011 and although the current bubble just burst if you are one of those people that likes to follow charts like myself it is easy to see the upward trend of the Bull Market and to see the real point and value or range where the market should trading is around 22,500-23,000 meaning it is actually safe to buy for the moment the trend "Bull" should continue upward.
If tomorrow it drops and closes below the 22,500 this actually may be the signal and beginning of a Bear Market, but I do not foresee a Bear Market happening. Now the opposite of get in a buy right away everything is on sale in a Bear Market is that it takes the markets a longer time to recover like in 2008-2010 and the average Bear Market; it does last about 2 years or more. During those periods you would want to either stay out of the market and wait for opportunity at a future date or put your money in things that are relatively safe and have proven themselves over time like Washington Real Estate Investment Trust (WRE), healthcare stocks that do well in an economy that has gone South (Ha ha! Testing to see if you are still awake, or if your off watching Rosanna Rosanna Danna clips from Saturday Night Liv every letter she reads is from him always in every sketch). The real story the Liars never told you is that the DOW actually rallied over 1000 points that day to close 500 points higher, it shows that the Bull Market is still strong.
"William, you talk a big game but I'm scared what do I do?"
In the end I cannot advise you I am not a licensed advisor and every ones situation is uniquely different. No one can ever always get it right, and the oldest disclaimer in the industry is: "This is what the market has done in the past, but the information cannot be a guarantee of future events. If you haven't purchased review the picks I have given you. It is a good time to buy stocks close too a 10% sale. If you hold positions like NVDA that took a large hit or RMD since I told you about it, then sit tight you didn't buy it to own for an hour, if I bring something I would buy or my gift has a great feeling about it I will share because I think it is something to hold for at least 5 years.
Remember my Blog is for novices, and anyone interested in the market, it is to educate, to teach, to share my wealth of knowledge about the Economy and Wall Street so that you can become a well seasoned investor and go North with me as we grow our portfolios together.
Besides, my Blog is 100% free no sign up, no obligation but you can submit questions to: williamswallstreet@gmail.com, visit our web page on Facebook, or donate to williamswallstreet@gmail.com on PayPal all donations are for the sole purpose of keeping this blog running and eventually support my ability to do this full time.
I am flattered by the huge success of this blog and it's growing leadership. If you have seen the movie "The Big Short" you can go back and read my former blog SellyourhouseNewMexico.blogspot.com and see how I started talking about the 2008 collapse back in 2006 and how I chronicle my experiences while I was participating in the Wall Street Journal Dartboard Contest.
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