iBankCoin
Joined Jan 1, 1970
509 Blog Posts

Market Looking Up

Policymakers and regulators are still groping for the necessary steps and actions to try to avert a complete meltdown.

Last week, I had stated that the stock market was headed for a crash and had the potential to repeat what happened in 1987 with a Black Monday crash.

The mitigating factor for all that appears to be emerging from our goverment. And that is, a coordinated effort to put together a comprehensive strategy which is global in scope. While there is much to be done, and still a tremendous amount of risk out there, I think it is time to start looking at buying stocks again.

This morning, I’m going to start positions again in [[SSO]] , [[DDM]] , and [[QLD]] to get broad exposure on the long side. I’m also going to buying the blue chips that are paying dividends, which would include some defensive names as well. Though I’m seeing opportunity here, I’m only using 1/4 of my equity capital allocation at this point.

Names include:

General Electric Company [[GE]]  

The Procter & Gamble Company The Procter & Gamble Company [[PG]]  

Kimberly-Clark Corporation [[KMB]]

Pfizer Inc. [[PFE]]

Intel Corporation [[INTC]]

Microsoft Corporation [[MSFT]]

Altria Group, Inc. [[MO]]

U.S. Bancorp [[USB]]

[[MCD]]

and Wal-Mart Stores, Inc. [[WMT]] to name a handful.

Keep in mind that there is still risk that we could go down, but a rally is overdue here and I think you can make some money at least in the short run.

For many of you, the name of the game is damage control and portfolio repair, so this may be an opportunity for you to do just that.

Finally, keep the stops fairly tight on the 2x ETFs and be ready to take profits should the rally fail this week.

Have a good day.

 

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What’s Happening?

We have more strategies and tools available to us now. I think that the first move off the bottom will be big. I’m looking to go 2X ETFs with some of my money.

However, I think that if we do get a rally, that it will not be sustained for any more than 6 months. There is just too much damage that will result from all this. We are moving in the direction of  a global recession now. There is no doubt in my mind.

You can’t have 60 of 60 stock markets down over 20% in one year, and ignore what that is telling us about the future of economies.

Fortunately, if a person is willing to trade, he/she can survive and even thrive.

Pity the poor (literally) Joe Blow investor and his full service broker who doesn’t understand this.

The big picture, however, is ominous.

I realize that using “the D word” scares a lot of people. But it’s not any different this time. Just the names and numbers have changed. The result is the same.  We are seeing the final cycle of a massive unwinding of debt, which eventually ends in a depression—in this case, globally.

 2012 will be the trough.

The last depression started to recover with WW II, and the market finally reached back to 1929 levels in 1954….25 years later.

Just know that there will be blood.

“There will be wars and rumors of wars”. Those aren’t my words.

People need to be prepared for what is coming. The stage is being set for a new form of world coordinated governance and regulation. It’s coming. People will welcome it because things will get so bad.

Simplify your life. Be efficient, be elegantly frugal, and simplify.

2012.

More on this another time………

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Wall Street Has Gone to Zero!

Yesterday it was the metals stocks. Today, it’s Wall Street-related stocks. The Bullish Percent Index for a group of 41 firms tracked by Dorsey Wright went to 0% bullish.

Yep, 0.00000%.

Banks and brokers are going out of business, maybe as soon as this weekend.

According to investors, there will be no more Wall Street. We will no longer need financial intermediaries. We will all be required to do all our business and transactions on Ebay (government guaranteed, of course).

A free course on “How to Barter During the New Era of Thunderdome” will be coming to your local community center or local VFW.

Shit. Give me a break.

Another Costanza moment developing…..

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Trading in Romania Halted!!

The world is definitely coming to an end now.

You will now have to pay to park your funds in your bullshit money market fund. Brokers will be charging a 5.75% load just to screw everybody one last time.

 

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Don’t Worry, Be Happy

People, lighten up. It’s only money. I’m talking to you too, Donny.

The government will simply print more. It’s job is to make us rich comrades, while they take over all the banks in the United Socialist States of America.

So, open up another Pabst, kick back in your pleather chair, reminesce about on the good ol’ days and drink it all in.

Seriously, you can still make money in a bear market—just be a bear.

You can even be a bull in a bear market. As long as you’re a part-time bear, you can still make money.

For you perma bulls out there who right about now, are getting ready to slit your wrists, I appeal to you. All is not lost.

I was recently perusing through my library of books on the market. Did you know that…..

The worst 12 months for the market was from June 1931- June 1932, when the market lost -67.6% ?…..the next 12 months, it was up 131.3%, the best 12 months ever.

The next worst 12 months was from March 1937 – March 1938, when the market was down -49.7%. The following 12 months saw it gain 17.3%.

Finally, the third worst 12 months was from May 1930 – May 1931, when the market lost -43.9%. Do you know what it returned the next 12 months…..

 

….  -58.5%

Ooops. Nevermind.

You get the point.

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