No Talk of Highs

I was struck this morning by how little news there is of the recent Wall Street Highs.

The markets fall and it is headline news on every television channel as pundits let fly on where, When and how the market is about to fall to a disaster.

Here we are at dizzying highs and not a twitter from local and barely a tweet from national TV, apart from CNBC and Bloomburg.

Last October and November after sufdfering a stroke, I was recouperating at home. A friend called in everyday and he is a bit of a nervous type when it comes to investing, we would watch the financial channels, and on down market days he would clamour and fuss,

"Everything's Falling!"

I would just respond, "So maybe I'll find something to buy."

Its all very comforting though. Word hasn't leaked out yet that there is money to be made on the exchanges. Why do I say that?

When word gets out everyman, woman, child with their dogs, cats and hamsters will be investing again. The markets will grow bubbles and burst amid more tears and laments about how dangerous it is to invest in the stock markets.

Ah the cycle of the markets. Enjoy the quiet while it lasts.

The silence if innocence until the talk of Highs leaks out and we start the merry-go round again.

Thanks for reading. Do you have any thoughts or comments on this post. Please leave a comment below.

Prediction for the week Ending 30th March 2012

This week is a nice week to end the first quarter of 2012.

Because it has a clear cut ending there is little vaguery as to what the effects of the second quarter will be.

My theory is that all the major players in Wall Street will aim  to lock in as many profits as possible this week.

So the bull run on the market willl continue Monday and Tuesday.

Wednesday March 28 to the close of business on Friday will see some downward pressure on the markets as institutions seek to close positions and pull in profits.

Look for major sectors that improved dramatically to fall in this last week of the quarter. Sectors such as Financials,

There will of course be lots of reasons given as to why the market will fall, from Europe, through housing concerns, consumer confidence to threat of war with Iran.

Most of these reasons may be made to sound plausible, but over thirty years of experience I have seen this scenario many times.

It happens far too often to be pure chance. It must just be institutional profit taking.

Be prepared to follow the roller coaster down a little, it can be a good buying opportunity in late Friday trading as some bargains may be had.

Monday April 2, 2012 will see some recovery as the climb through a slow second quarter will begin.