Will the stock market test the recent lows?

The US stock market is expected to open lower today due to several reasons: one of the biggest bond insurers, MBIA, is expected to have bigger lost; bigger than expected employment number announced this morning; Higher cost for companies; trading went south after the firm uptrend after the FED interest rate announcement; (AMZN) is expected slower 1st quarter sale.

All these news are bad for the market. I believe we maybe able to see the recent lows touched mid January. The best advise is to wait and see if the low can be hold. We are looking for another panic selling days before buying.

Cash is the king right now. Bond rate is too low. The bright days should be coming in the near future.

The FED Has Acted, Market Responds

As expected, the FED cut the interest rate by half due to the economy slowing down. Stocks have soared as soon as the announcement came out. The million dollar question is: Is this the time to get back in and buy stocks?
The million dollar answer is nobody knows. I would do right now is to see how well the market can hold with the gains into the close. If the volume picks up and stay on course, I would start to nimble a bit, but if it fails, I would wait for better opportunities later. It is still the time to be cautious because of the recent technical trading patterns. Watch the trading volume and the direction of the market. Don't be the sole brave hero out there by yourself.

Stocks to Watch After Close

The stocks struggled back and forth, it finally closed to the upside. Volume is higher than yesterday's close. Normally it should be a good technical upside day, but the (YHOO) reported worse than expected guidance, it was down over 10% after hour. Along with other small tech companies, (CYMI) and (HTCH), along with (BIDU) is down over $9.

FED meeting is tomorrow. (GOOG) earning is coming after close. All in all, I would still be cautious about buying anything right now. More bad news can be expected from economy front, financial earnings, and inflation. Stay with your cash for now.

Events to Watch Next Week

We had a very volatile for the past week. All major indexes had their biggest swing from low to high in years. Is the bear market or correction over? The million dollar answer is, nobody knows. We just need to watch for leadership changes and confirmations before dipping into buying again. The major event for next week is off course the FED meeting, the prediction on the street is 0.5% reduction. Other events (source Yahoo Finance) you may want to keep track are:

Conference/Events Calendar for the week of January 28th - February 1st: :
Monday: ATTEC Analyst Meeting SI at The Society of Thoracic Surgeons Annual Meeting; BAC, TRB at Financial Research Associates 7th Annual Managed Accounts Technology & Operations Summit; Credit Suisse- Captial Services NY Hedge Fund Manager Roundtable; GS, DB, LEH, WB, MDY at Financial Research Associates Secondary Life Market Summit; YRCW Analyst Meeting and Q4 2007 Earnings Conference Call...
Tuesday: 2008 Wachovia Healthcare Conf; Banc of America Securities Gaming Conf; HBAN, SFI, WM, BAC, COF, MS, TD, NCC at Citigroup Financial Services Conf; HUM, CI at IQPC Next Generation Health Plan Banking & Administration Management Conf...
Wednesday: BLC Analyst Meeting; CLWR 2008 Investor Day; NNDS Investor Day; AMGN, DGX, AMAG, RMD, HMA, POZN, EYE at Wachovia Healthcare Conf; Banc of America Securities Gaming Conf; MER, NYB, FHN, CMA, AMP, MET at Citigroup Financial Services Conf; NVO, ILI, INFI at C5 Pharma/Biotech IP Due Diligence Conf; VDSI Annual Investor and Media Conf; WB, MA, BAC, AXP at C5 Consumer Finance Class Actions and Litigation Conf; Fed: Policy Announcement...
Thursday: TEC Analyst Meeting; ALGT, AAI, CPA, SKYW, JBLU at Raymond James Growth Airline Conf; ASH Annual Meeting of Shareholders; BMTI, CYTR, CYH, CYTX, ALXN at Wachovia Healthcare Conf; MNTG at Banc of America Securities Gaming Conf; PTEC at Southwest Securities Small Cap Growth Conf...
Friday: The McCloskey Group South African Coal Exports Conf.

Is the Stock Market Back?

After two days of massive up couple days, many would ask if the stock market bottom? The million dollar answer is that nobody knows. But based from my past experiences, it is still too soon to tell if the rally is for real. Wait for more stock leaders to confirm the rally before buying.

With more risk to the market, here is one stock you may want to take a good look at it, (RMG). It is in the risk management arena. It is the right area to be in based on the current stock market condition.

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This is a very inspirational video on how a teenage girl can turn $8 into millions of dollars. Watch and turn from it.

Has the stock market reached the short term bottom?

After yesterday's massive reversal to the upside at the close, many of the investors and traders will ask if this is the short term bottom. In my humble opinion, this is the short term dead cat bounce. Why? I think there are several reasons:
1. no new leaders have emerged from the wreckage yet;
2. the recent low maybe tested again;
3. no end to the recession fear;
4. price of oil is still high;
5. solar stocks are looking down today (used to be the darling from last year);
6. (EBAY) and (AAPL) reported disappointing forecast.

I would hold off buying for now.

US Stock Market Is In Bear Market

Based on the past few days trading sessions as well as the past month performance, we can safely say that the US stocks market is in bear market now. There maybe bounces up sessions, but it will be met with resistances until the situation "changes". The word "changes" implies something will signal a change to the market sentiment. We will have to wait the "change" to occur before any major buy program kicks in.
In the meantime, short the high flyers, and don't buy any strong momentum stocks now. Keep your cash at bay. It maybe needed when the "change" comes.

Stocks Are Sinking

The market was initially up before it opened this morning, but it went south after the Fed chairman testified with the Congressional finance committee. The US economy seems to be in trouble as confirmed by the chairman. That spells bad news to the stocks investors. Don't be greedy, hold your cash and wait for entry opportunities for now.

Look for high quality stocks when the time is right.

The market is looking down this Wednesday morning

With Intel (INTC) pre-announced to miss estimate and future slowing sale this morning, the market is looking down. The fear of recession along with slower sale from Intel and Samsung yesterday, the good news from IBM and HPQ a few days ago did not provide any good short term support at all. The best strategy is to stay away buying and short the high flyers.

The Market is in Swam with Bears

With the recent trading actions on the street, it is quite obvious that we are in bear market now. Any day can be treated as selling your positions days. The US economy is looking to have recessions in the near term. And inflation is popping up everywhere you go, gasoline, food, and many kinds of basic materials are up. These scenarios do not bode well for the bulls.

I would stop buying any stocks right now. Hold tight with your cash until the tide has turned. Like Cramer says: "Don't Buy!"Don't Buy!" Yesterday we had great earning pre-announcement from (IBM) and (HPQ), but today we got bad news from (C). Most bad news are coming in the coming earning season. Stay put. Short the high flyers from last year, it can make you money.

Stocks to watch before open Monday

The tech stocks are getting a boost from a few major companies, (IBM) and (HPQ). Both announced better than expected earnings to come. Looks like these big cap international tech companies will provide the short term base support for the market.

If I want buy any today, stick with these two names, forget the smaller stocks in this kind of unstable markets.

The Market is in Down Trend

Even though we had a good day yesterday, I believe the market is in the downtrend. Tech heavy Nasdaq still shows major weaknesses among the chip sectors, solar, and the high flyers of last year. Unless we can see the follow-thru from the yesterday strength with heavier volume, otherwise some traders will sell into strength again.

Hold tight and sit with cash and wait for opportunities to come. Join me at my new Money Talk forum at http://moneytalk.go4reward.com.

Market is in Bear Mode Now!

With Nasdaq getting its 9th straight loss, and it has already sank over 9% for the year 2008, the market is looking tiring now. Every time it goes up, it hits with a lot of sellings. We are in the bear market now. Like Cramer says: "Don't Buy! Don't Buy! Don't Buy! Don't Buy!"
Down volumes are getting heavier and heavier. I would use any up day opportunities to get out of the longs I have. Stay with cash for now, Cash is the King!
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New Investment Forum Started.

By many requests from my users, I have started a new stock forum at http://moneytalk.go4reward.com. So I can better interact with my loyal readers. The forum is intended for stock investors. Come join us at http://moneytalk.go4reward.com.