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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What A Rough Week! Stay Positive And Have A Happy Holiday.

Well I don't have much to say about the Market Action for the past few days.  Every report that has come out has been perceived as negative.  Unemployment is still a problem, home sales are down, BP has yet to fix the oil leak in the gulf, and the financial reform has passed, which leaves some uncertainty in the financial sector of what to expect for future earnings. 

Tomorrow will be a big day as everyone awaits this months non farm payrolls.  This is the best gauge to determine the strength of the employment numbers.  We need to see increased jobs!  I don't expect to much trading tomorrow as we go into the holiday weekend.  One positive I saw this week was from Ford Motor Company.  Just this week they announced they plan on paying back $4 Billion on their debt.  That's a great sign for this automotive company.  This puts Ford ahead of the rest and allows them to invest in their company to gain market share instead of paying interest on $4 Billion. A strong balance sheet is also what fund managers look for in a company and by Ford paying off debt they should gain some buying interest across the board from all the fund manager's.  Ford will be a good stock to watch over the next few years.

After seeing the market movement this week all I can say now is continue to be cautious.  Don't worry about these ups and downs.  Summer months are historically volatile as not much trading occurs as many traders take time off and  the volume of shares traded is significantly reduced.  Continue to pay attention to the high yield stocks as is seems that these are the only real stocks that are somewhat protected from the severe market downturns.

In the meantime try to read as many books as you possibly can on the subject of investing.  Educate yourself!  Prepare yourself  for when an opportunity arises you will know what to look for.  This will give you an advantage when the market becomes positive and you invested your money wisely by making the right decision.

Here is a list of books that I have read and I consider extremely helpful to my investing success. I suggest if you have some time you could pick one up before the holiday weekend.

1. Real Money-Author Jim Cramer
2. Mad Money-Author Jim Cramer 
3. Stay Mad-Author Jim Cramer
4. Getting Back To Even-Author Jim Cramer
5. Invest Like A Shark-Author James 'RevShark' DePorre
6. The Secret Code Of The Superior Investor-Author James K. Glassman
7. The Market Maker's Edge-Author Josh Lukeman
8. An American Hedge Fund-Author Timothy Sykes
9. Beating The Street-Author Peter Lynch
10. The Single Best Investment-creating wealth with dividend growth-Author Lowell Miller

This selection of books should keep you busy for awhile. LOL!

I apologize in advance as I will not be blogging this weekend as I will be enjoying myself and having some fun in the sun!

HAPPY HOLIDAY!

Thank You,

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com


New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower