CHESSNOID

It’s hard to predict what the stock market closing numbers will be. If anyone really knew that, then they would already be rich. That would be similar to knowing what the winning lottery numbers are before they are picked. Anyways, from the information we do have, we can make estimations of what we think the market will do.  There are now tons of technical analysts who focus on the numbers and interpret what they mean. I am definitely not one of those guys because it requires more discipline than I have.  I do use charts and moving averages but no where near the degree that they do.

It looks like the markets are racing to break psychological floors.  The S&P already has broken the 900 floor. The Nasdaq has broken the 1600 floor.  The DOW is on its way to break the 8,000 floor again. It has already tested and broken that support mark but bounced back up and didn’t close there.  I think there is a good chance we break that floor today and close below it.

If you followed what the “experts” said in the last 2 weeks, then you are probably down 20-25% in your portfolio. My advise is seek your own information, and make decisions based on information you have found and interpreted yourself. Don’t rely on experts, since the majority of them have been wrong. I sold all my stocks last year before the market top. I have avoided the 40-50% drop in my portfolio. My greed was put aside back then and I replaced it with preservation.

I have lost money before, and once it is gone it’s gone. Obviously, I don’t know when the market will top so I sold too early. But I kept all my profits this time. The same thing goes for the bottom of the market. I don’t know what day that will be, but hopefully when the fundamentals and technicals start to flatten, then I will start to reinvest in all my favorite companies using the dollar cost averaging method. They will probably be the same stocks I owned a year ago.