How To Make Money In The Stock Market...

Look, right now is not a good time for wishful thinking. I don't know if this selling of the past few days would really even be categorized as heavy, compared to other negative moments I can remember in my memory. I do know, that we were talking about the correction and describing it more than a month ago when ci hit as lower at 1474 on 28 February 2011.   That since the rally had lasted so long, somewhere between a 5% and 15% pullback would be reasonable and likely.

(Of course, it is much easier to talk about it than live through it).

We said any correction or pullback in market prices would have to be accompanied by news that was very upsetting. People just don't sell without a story. At least, the media do not report selling without a story. But remember, we knew there would be selling, and we knew there would be a story to go when it. We just didn't know what that story would be.

We knew this selling episode was coming, and we knew what it would look like. So how can anyone say that the market action is caused by the events in the news? There are always good and bad events in the news.

Most great up moves in the stock market start gradually. They also start with short covering. So, none of the disclaimers that the "experts" use to discount the rally actually mean anything. The question is, now that we have had a little buying and prices are moving up a little, do the higher prices on relatively low volume stop there; or does demand actually strengthen now?

Most amateur investors, in fact, most investors of all kinds, don't have any way to read what is happening in the stock market, and so they are left having to guess or base their actions on what they think SHOULD be happening or what they WISH WAS HAPPENING.

I am telling you this, not to show how smart you and I are,The truth is, there is a balance in the universe. Things happen, and they aren't good or bad. They are neutral with good and bad aspects to them......