Let me start by saying I am truly humbled by the number of followers we have out there. It has been awesome and I hope the future is bright for our stock market and economic commentary.We are at a tipping point in the worldwide markets, and though I don’t feel we are in the same boat we were in 2007 and 2008, I feel the markets are too unstable to make substantial trades and investments. My reasoning is simple. The Euro crisis, no matter how little we make of it, is not going away anytime soon. Secondly, we have to test the S&P low of 667 in order to be in a new Bull Market. Those issues have to be dealt with before an “all clear” is apparent. Lastly, too many people are abandoning fundamental investment strategies and looking too closely at Technical Indicators. That is not a good sign for the near term future of the markets. Technicals have to confirm fundamentals.If Greece leaves the Euro, the Euro will tumble, the U.S. dollar will rally and commodity prices will get crushed. Thus, sending commodity related stocks tumbling. Not a good position to be in.My advice today is to go to cash and wait all this out. There will be plenty of opportunities in the coming years. Right now there just are not any.
Wednesday, May 16, 2012
Thursday, December 15, 2011
Economic Growth Continues in 2012
On December 6, 2012 the Institute for Supply Management released their December 2011 Semiannual Economic Forecast stating that economic growth will continue in 2012. This is encouraging going into 2012. Some key points to note is the economic forecast indicates that it will continue to expand in the first half of 2012 and even at a faster rate in the second half of 2012. As you prepare to review your success and failures of 2011 and gear up your trading plan for 2012 this is a great forecast to get familiar with and know what to look for in the year ahead. Remember the trend is your friend and the ISM data suggests a stronger 2012. Below is the link to the full report.
December 2011 Semiannual Economic Forecast
Source: Institute for Supply Management
Wednesday, December 14, 2011
Non-Manufacturing Sector Continues to Grow
Yesterday we highlighted the most recent ISM Report for manufacturing so today we will focus on the non-manufacturing data. We highly encourage everyone to read this monthly report including our clients and followers. It is a key metric we follow here at the Traders Block and it will help you to become a better trader and reduce the clutter the talking heads love to put in your head. The facts don't lie. Here is an excerpt from that latest report.
Excerpt: NMI at 52% - Economic activity in the non-manufacturing sector grew in November for the 24th consecutive month, say the nation's purchasing and supply executives in the latest Manufacturing ISM Report on Business.
Again we should be doing double backflips with this kind of data. Remember to take control of your own money and the trend is your friend.
November 2011 Report: http://www.ism.ws/files/ISMReport/ROB201112.pdf
Source: Institute for Supply Management
Tuesday, December 13, 2011
Manufacturing Sector Continues to Expand
Excerpt: PMI at 52.7% - Economic activity in the manufacturing sector expanded in November for the 28th consecutive month, and the overall economy grew for the 30th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report on Business.
We should be doing double backflips with this kind of data. Remember to take control of your own money and the trend is your friend.
November 2011 Report: http://www.ism.ws/files/ISMReport/ROB201112.pdf
Source: Institute for Supply Management
Friday, December 2, 2011
Trade Update for PZG and HL
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Watch now for the latest trade update on $PZG (Paramount Gold and Silver) and $HL (Hecla Mining).