You only did the right thing if you bought into a bear market today.

I’m not buying this bull market. I don’t know why the stock market rallied today. But, if you took this opportunity to buy some UltraShort ETF’s, you did the right thing. It just seems like the logical thing to do.

CNBC took a poll today about where the market is heading. 61% answered that they expect the market to plunge. And it makes sense. Most people are pessimistic about this economy. They have every reason to feel that way. So go ahead and be a bear for a while. The odds are in your favor.

2010
07/06
CATEGORY
Finance
14 comments

Under my plan $DUG rates would necessarily skyrocket.

I think the Dow will go to 9500 and then stay in that range (+/- 300) until August 2010. It’s interesting because the oil spill should make crude prices go much higher, but that just isn’t happening. So, if that doesn’t explain it, then what will?

Well, BP is going bankrupt because of this whole mess and that’s bringing down the whole sector. The weak job market is also a big factor. We also know that BP isn’t going to get a bailout and walk away from all of this. That’s another reason why crude will stay low. Maybe they can start focusing their attention on alternative energy kind of like most investors have started looking at other companies to invest in.

The oil companies are trying their hardest to get OPEC to keep crude in the 70′s. Most likely it’s going to settle in the 60′s. There’s a good chance crude will stay in the 60′s because there isn’t any good news on the economy right now. Once summer is over and the pressure of making enormous profits when people are traveling the most goes away, I think we’ll see a some kind of stabilization… maybe even a bull market.

2010
07/02
CATEGORY
Finance
104 comments