CHESSNOID

Even though the stock market is in a downtrend and I have sold all my stocks, I like to follow all the stocks I previously owned. They are all taking a beating right now. To me they all look like they are on sale and great buys. I doubt any of them will go bankrupt in this recession. Although that is not impossible. Some of them may get bought out like Yahoo by Microsoft. It seems like the commodity to be in is gold and other metals. I have no idea how to do well in this market and it really doesn’t get me excite to learn. I do know gold is at an all time high and will probably continue to break new highs.

The stocks I will be re-buying in the intermediate future will be Apple, Google, Amazon, eBay, Yahoo, Cisco, Microsoft, Walmart, Oracle, Starbucks, and the QQQs. Other stocks I will be researching will be the banking, real estate, and builder stocks for long term holds in the far future. Again, I will be waiting for the technicals to signal when to buy them. If you are curious where I am learning how to read technicals, I use this site called Stockcharts.com. It is free but does offer some pay services. The site will explain to you how the theory of numbers can be used to help reduce your risk. Or check out Brian Shannon’s Alphatrends video blog of his technical numbers interpretation. I think he is very accurate and knows what he is talking about.  I have been using both sites daily to learn to do my own technical analysis.

Less than a few weeks ago, the federal reserve did an emergency rate cut of .75 points, then a regular rate cut of .50 points. That was one of the biggest rate decreases in the shortest period of time. It seems like they may back off just reducing it again in the near future since it is already low, but that will be hard to predict. I think the last time they reacted was caused by the falling markets overseas. It did delay the fallout and our stock markets rallied temporarily with the foreign stock markets following our footsteps. Now we are in a recession unofficially but most Americans know it from daily living expenses. It looks like the stock market is back following the downtrend and will react to any forecast news that big companies announce.

The crazy part is we are in an election year which is most times a year when the stock market goes up. The president and the white house has done such a poor job to create this type of environment and don’t really know what to do. Obviously, the next president will have his/her hands full when he/she takes over. That change of guard next year may be the catalyst to spark the stock market in a positive direction and end our recession miseries. If that president withdraws troop immediately, we will definitely see relief in the economy and renewed faith in our stock market. Possibly stop the housing bust in the process, too.  Let’s keep our fingers crossed.