Making Money Trend

Since Monday all the market indices are in the green. Today was a bit of a slowdown awaiting the infamous monthly non farm payrolls. I’m feeling pretty good about tomorrow’s jobs report.

Yes stocks tend to sell off the day before a big economic report, but it’s exactly how the big money managers play the game. They lighten up a bit on their winners awaiting the news. If the news is positive (which I think it will be), they will gradually work their way back into their favorite stocks.

From the recent upward trend in stocks I believe the outlook in jobs has turned to the upside. Weekly jobless claims have been gradually dropping in recent weeks and this has given the stock market a boost to the upside. Even if the non farm payrolls is positive tomorrow invest with caution. Remember this saying “Buy on rumor” “Sell on the news” Investing is counterintuitive. When everyone one is selling the smart investors are buying stocks at great prices to position themselves for a hefty profit. When everyone is buying the bulk of the money has already been made and the smart money is gradually selling into the strength on the positive news. Never chase a stock when it’s up big! Never! Be patient and buy on a down day.

This stock market has surprised me over the past few months and I believe stocks will continue to move higher throughout earnings season. The volume always increases and more investors pay attention to their stocks.  They pay attention to ensure the companies they invested their hard earned money continue to outperform. For this earnings season pay attention to the winners and sit back and take advantage of the short term moves upward. Earnings time is a great way to find new companies to invest in. Wait until all the earnings noise subsides and invest a couple weeks after the company you would like to invest in reports it’s earnings. I’ve seen the same trend over and over. A company reports great earnings and the stock surges higher for a couple of days and then comes right back down a week or two later. Humans are very emotional and people get too excited when they should be doing just the opposite.

Well that’s it for me. Stocks have been great! I’m definitely a bull in this market. I have no complaints. The positive trend will continue with a good payroll number tomorrow. Sleep easy!

P.S- Kinder Morgan (KMP) broke its 52 week high. Another one of my favorite stocks that has MONSTER STATUS written all over it! It pays a nice juicy 6.30% Dividend. It’s a glorified toll road for oil.

Clay-

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