Friday, March 2, 2007

Market Commentary

Here are some thoughts about the current market conditions.

We have been in need of a correction after this bullish uptrend since August 06. Did we expect that kind of drop? No. Are investors on nerve right now? Yes. Will selling continue? I think so. Is it time to start looking for a short off a bounce? That's what I think. Are defensive stocks safe? Depends on how long you hold them and if you believe in dollar cost averaging. Here's some sobering realities.

In October 1987. GE saw its stock close at 50.75 on Friday, October 16, 1987. On the following Monday, known as Black Monday, it dipped to as low as 38.75. Even a safe, defensive stock like JNJ had more than 18 percent of its value disappear during that awful day.

I love it. Please investing world let the hedge funds have their year. More panic, more money for the contrarians and less for the herd.

Still in cash position right now looking for shorting opps.