Stock Market UpSwing to level off?

[Praxeas]

Any of you investment savvy people have an opinion? I was reading that about May the upswing usually levels off and recently we've had more downs than ups...

Originally Posted by Praxeas

Any of you investment savvy people have an opinion? I was reading that about May the upswing usually levels off and recently we've had more downs than ups...

The best analysts have been predicting a pretty good correction for sometime now which has not happened yet.

There is an old saying that May is the time to take your profits and lay low until around Autum.

I notice that all indices are down today. Dow is down more than ten percent from a dizzying height of 13476. This kind of buying is insane and many analyst believe investors are going to pay the piper. It might be a good time to short some trades that has to do with non essentials. Consumers will always buy the essentials.

[Praxeas]

I have some mutual funds that have been doing good for now, but recently there have been some pretty low "lows" and if what they are saying is true about May and the rest of this season I am wondering if I should shift the monies to an annuity account I have (good yield)

As a daytrader (part-time), I am not totally concerned with a correction. You can still make money at it if you are careful.
Remember: what goes up must come down. That is a fundamental rule of stock trading.
I also follow the converse of that statement, but try to cautiously avoid becoming married to any stock for too long. It is far too easy to erase profits.
NI

[Praxeas]

Originally Posted by NobodyImportant

As a daytrader (part-time), I am not totally concerned with a correction. You can still make money at it if you are careful.
Remember: what goes up must come down. That is a fundamental rule of stock trading.
I also follow the converse of that statement, but try to cautiously avoid becoming married to any stock for too long. It is far too easy to erase profits.
NI

can you offer some suggestions on educating myself to do some day trading?

BTW are yiou referring to selling short?

[ILG]

I keep my eyes on the stock market even though I am pretty much ignorant about it all. Why is it so high nowadays when it was 6000-7000 about 10 years ago? IS this a good thing? Will it ever come back down? Isn't there a need for something called a "correction"?

[Praxeas]

Originally Posted by ILG

I keep my eyes on the stock market even though I am pretty much ignorant about it all. Why is it so high nowadays when it was 6000-7000 about 10 years ago? IS this a good thing? Will it ever come back down? Isn't there a need for something called a "correction"?

I've read that there is a bubble....that a lot of companies have been barrowing "cheap money" and going into dept and that eventually because of this that bubble should burst sometime soon

[ILG]

Originally Posted by Praxeas

I've read that there is a bubble....that a lot of companies have been barrowing "cheap money" and going into dept and that eventually because of this that bubble should burst sometime soon

It scares me and I think about it enough that I'm maybe going to take an economics class this fall. I want to figure out what this is all about. The housing crisis is not good. The stock market is way up. Doesn't that mean that corporations are overextended?

Originally Posted by Praxeas

can you offer some suggestions on educating myself to do some day trading?

BTW are yiou referring to selling short?

I stay out of short selling simply because the risk can become high real fast. I prefer to by in and out of small issues where I can leverage a small amount of capitol and HOPEFULLY get a modest to good ROI.
If you are interested in daytrading, let me reccomend some good books to read before you plunk down any money:
a beginner's guide to day trading online- Toni Turner
The Electronic Day Trader- Marc Friedfertig and George West (A+++)
Stock Market Rules- Michael D. Sheimo (this is a must read)

Mrs. Turner's book is concise and discusses her ideas about trading. She reccomends some good ways to paper trade to avoid losses while gaining experience.

The Elec Day Trader offers some good strategies for trading and good outlines as well to learn while not losing money.

The last by Mr. Sheimo is excellent and dispels many miyths about trading. His experience in the market is second to none.

If you want advice, please accept this- don't trade until you have done several weeks of paper trading for experience. Had I followed this advice, it could have potentially saved me several thousand dollars which I lost on my first trade.

I have since learned a few things, but it was a very expensive lesson.
God bless,
NI

Originally Posted by Praxeas

I've read that there is a bubble....that a lot of companies have been barrowing "cheap money" and going into dept and that eventually because of this that bubble should burst sometime soon

That's right.

So many of these companies are insanely strung out on debt that their debt to equity ratios are totally unreasonable. This is true with many of their Price Earnings ratios as well.

A correction will come but let us hope and pray that it will not be as severe as the Tech stocks in 2000 and 2001. Some of those tech stocks that were trading over a thousand dollars per share are now pink sheet stuff.

Misplaced confidence in the strength of a company without proper fundamentals will surely come home to haunt the stary eyed investor.