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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
Play The Volatility
As I looked at my trading screen today I saw a lot of green. Green screens, of course, that indicate a market that's finally starting to trade higher.
To this I say -- it's about time.
After so many down days during the past few weeks, the welcome relief of green screens indicates that not all is lost on Wall Street. The sector showing one of the biggest spikes higher today is financials, which is particularly encouraging after a few weeks of difficult headlines about bank failures and the pending demise of lenders Fannie Mae and Freddie Mac.
Alas, finally some light at the end of the tunnel.
As you can see by the chart above of the S&P 500 Index, stocks have been kicked around now for some time. And while I think the fundamentals in the economy and in the market will keep stocks lower for a while longer, I do anticipate at least a snapback rally (feel good rally in a bear market) here such as we've seen today.
How long this rally will last is anyone's guess, but what investors can do to take advantage of the situation is play this market with differing strategies for the short term and the long term.
Over the long term, I think it makes sense to have a high-cash position. However, over the shorter term (weeks and months) it makes sense to try and trade into these snapback rallies. Use the resources below as a way to trade this market:
Also, if you have more than $100,000 at any one bank and don't have it in separate accounts with different tax IDs (also called social security numbers) You need to get your money out TODAY. There is no way of predicting IF your bank will fail. Bank failures don't happen because of financial reasons (like lousy earnings, big losses or toxic assets on the balance sheet), they occur because depositors simply lose faith in the bank and demand their money back -- from one day to the next. Rumors, not reality, bring down banks. No bank has enough cash money to give everyone their money back. In fact, my erstwhile main bank, Sovereign Bancorp has $2 billion in cash to meet $49 billion of deposits. They call that 24.5 to one leverage!
- How (bad) Certain Investments Did Last Week
- Dow Dips Below 8,000 Threshold, Reaching April 2003 Levels
- Some Insight From The Blogs:
- Canslim.net Morning Comment And Links (for Traders)
- Stocks Fail To Turn Up; Sec's Shorting Ban On Financial Shares Expires
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
Today we have the Fed speaking and release of Fed mi [read more]
NOTE: Please click on the charts below to enlarge them [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
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