I try to update my readers with my own articles but sometimes I come across articles that have very pertinent information and are a great read. I write here because I care about the small individual investor and most of the time, I feel we receive poor information/advice. We are at a huge disadvantage because we must filter through all that garbage information to receive the truth, if any is even to be found where we look. This can be a tedious job and many times we will slip up and accept the wrong information from pundits on TV or irresponsible advice on forums. Sometimes we get sucked into believing those sites that tell us how they predicted all these 1000% winners every week. If they predict so many 1000% gainers with such accuracy, how are they not all billionaires by now? If they are all billionaires by now, do you think they are updating their stock websites out of the kindness of their heart?
My point being is this site is to help the underdog individual investor learn to maneuver in the deep dangerous waters of the market. It can most definitely be done but it takes much awareness and the ability to decipher good and bad information. To do this right, I will sometimes link articles on here that I have not written myself. My purpose is to further educate all of you in a timely and efficient manner.
Here is a recap from Jim Cramer’s Mad Money Show today. I’ll be crucified for agreeing with Cramer as many have made him out to be the devil and routinely disagree with him every step of the way. I disagree with that strategy however I far from agree with him on everything. His sentiment on what will happen to the market, if the Health Care Bill passes on Sunday, is worthy of a read. I feel small caps to large caps will be affected by this, more so large caps though. Micro caps should be mostly unaffected as they fly under the radar of the general market news typically.
I’ve increased my cash position as of late in my larger caps and have been very selective on where I’m adding my money at the moment. I think this bill could be the potential trigger to return us to a downtrend that the bears are desperately seeking. It could be a simple correction or a longer downtrend but either way, I fully anticipate the market to sell off if this bill is passed. The length or exact drop I can not determine at the moment. I’ll be adding more to my cash position on Friday and wait it out to see what happens. I will look to add on favorable prices if the correction/downtrend does start to take place next week, assuming the bill passes on Sunday. As always, do your own homework to see if you agree with me. Good luck out there.
Random News: As you’ve seen from my twitter updates and being in the chat room, I’ve downsized my position in Impac Mortgage (IMPM) the past few days and was very disappointed in the volume today. I still have a smaller core position to let ride but with such dry volume, it will be hard to sell shares at higher prices. I also added to Cord Blood America (CBAI) and Sirius XM (SIRI) today on their respective pullbacks.
At the time of publication, Kudrna was Long IMPM, CBAI, and SIRI but positions can change at any time.