Charting Stocks

The Dow Jones Industrial Average rose almost 240 points (3.5%) today. As mentioned in a previous post, large daily percentage gains are more consistent with bear markets than bulls. Todays rally was led by banks and REIT’s,  two of the most beaten up and oversold sectors – also consistent with a bear market correction.
Below is [...]

News of a leaked memo by Nationalized Citigroup CEO Vikrim Pandit sent the markets soaring 5% today. The memo states that Citi is profitable for the year. We’ll wait and see if Mr. Pandit’s optimism makes its way to the company’s next earnings release. Judging by previous and similar such statements by Citigroup’s CEO, we [...]

Seasonably speaking, December is one of the best months to own stocks. For the past 20 or so years the average monthly return in the month of December has exceeded 3%. Considering how quick and intense this collapse has been, one must anticipate a counter-trend upward correction. Bear markets are notorious for these but you [...]

I’m amazed at the amount of optimistic propaganda peddled by the mainstream media as well as major investment houses. Countless are their graphs and comparisons which claim that buying and holding stocks is the best way to grow capital. They tell you that the average return of the stock market is 10% and if [...]