Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

Trading bottom??

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I thought this anecdote might shed some light on the market swings, and how bad it was mid-day. 

Heyer Capital is a registered investment advisor, and my clients typically have some money with me, invest on their own,  and/or  have some with stockbrokers.   A client said she called her stockbroker this morning, and her stockbroker was crying, paralyzed with market anxiety. 
When clients need to cheer up their stockbroker, that seems, my friends, an awfully lot like a trading bottom.  
Risk is high, given the two 800 lb gorillas fighting (an election-year government that can reach into your pockets squaring off with the market’s huge pent-up imbalances.)  Watch for the “Follow Through Day” in Day 4-7 after this reversal day (if new lows are not made before then.) 
Remember, these big up-days occur 80% of the time in the context of a bear market.  Keep stocks, if you have ’em, on a leash.  My fingers have already been burned in the past couple days, so I get the reminder notice to myself that sometimes fools and their money are lucky enough to hook up in the first place. 
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Written by heyercapital

September 18, 2008 at 4:06 pm

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