Trading is not easy; however, becoming a trader is very easy. There are no obstacles whatsoever to anyone opening a trading account – Dr. Van Tharp
It is true your money is your own, so you are free to do with it what you will. Keep in mind the above thought if you are considering trading to work your money, though. As well, those who already trade or invest on their own, keep in mind the following thought, especially if the market movement today stays strong to the upside …
With the media obsessing on the negative and downbeat, you might have thought there is nothing but despair and hopelessness ahead for the US and Europe – just the sort of stuff that might help to bring in the buyers …
The above is a contrarian perspective, no doubt, but it represents my perspective, especially since I have been writing that the fundamentals of the U.S. and global economy are intact. The media breeds fear, and those who work the market with this understanding have a much better chance of buying low and selling high.
Data released on Tuesday showed economic growth is slowing down, but not too quickly, providing relief for financial markets that China will avoid a hard landing and leaving room for Beijing to focus on fighting inflation.
Yesterday, the pessimists suggested the CPI number from China today would be over 6%. Well, it came in at 5.5%, and China responded by raising bank reserve rates to 21%, which effectively reduces the amount of money available for loans. It looks as if China just might pull off a slowdown of its overheated economy.
According to the latest issue of the Vickers Weekly Insider Report, insiders last week had a dramatic change of heart. Insider sales in the week ending last Friday were 32% less than in the prior week, while there were 33% more purchases. As a result, according to Vickers, the ratio of weekly insider sales to purchases is now at its best level since the first week of last September.
Now, I will grant you that insider buying and selling is not always the best indicator for broad market moves, but in the current environment, the selling appears to be tracking fear and the buying appears to be reflecting rationality, a retreat from the fear.
Americans bought fewer cars during the month, but the decline reflected temporary supply chain disruptions caused by the earthquake and tsunami disaster in Japan. Excluding weak car sales, retail sales rose 0.3 percent.
The above tells me that although the market has shown fear, the consumer is hanging there, which is the best indicator of all.
Trade in the day – Invest in your life …
