Digg It |   Del.icio.us |   Printer Friendly |   PDF |   Email

Short Term Prediction: Why the Market is Heading Up

Monday, September 10, 2007 | (tshabo) Is this Spam?

Rating:

Mr. Market operates in a very funny way. If you have ever been a student of the market, and we all are, you will have noticed that it goes up and down in cycles. There is the "sell in may and go away" cycle and there is the "four year presidential cycle" and so forth.

Today, we have a combination of several factors. The first is that the market is edgey and it wants the Fed to intervene in a very positive way to lift the market up. Intervention might come in the form of cutting intrest rates across the board AND injecting more liquidity. Cutting interest rates will raise stock prices higher. Injecting liquidity will make it easier to find money to borrow. It also will have the negative effect of diluting the value of the dollar, but the positive effect of paying down our national debt.

We are also at the end of the year when the market traditionally goes up. Also, we are in the forth year of a presidential cycle and that also traditionally made the market goes up.

So you ask, "when is the best time to buy stocks". Well, if I were you, I would buy now before the fed cuts interst rates.

Some of the equities or options that I would buy are OSTK and December QQQQ calls. I would also look into buying some oil related stocks like VLO, COP, and SLB. Although there are more stocks to recommend, these stand the best chance of appreciating.

Thanks for letting me rant.



Rate this article
Thank you for your vote!

3 Comments

Post your own comment
  • Most recent
  • 1
  • Oldest

  1. Thomas (1 year ago) Is this Spam?

    Give Mr Market time.

  2. Thomas (1 year ago) Is this Spam?

    Although the article tried to ovresimplify things, the DJIA went up about 400 pts, OSTK went up two dollars and the QQQQ went up about 1.50. All of this in anticipation of the Fed and the overbought / support lines. That was my short term prediction.

  3. jester112358 (1 year ago) Is this Spam?

    There's only one thing that drives stock prices (or prices of anything): supply and demand. So understanding the variables which affect stock supply (IPOs, insider options issuing new stock which dilutes the value of the old, stock buybacks and insider buying), and demand (investor psychology or sentiment, interest rates (cost of borrowing), differential bond vs stock yields) determines the price of an equity. The devil is in the details, of course.
  • Most recent
  • 1
  • Oldest

Add Your Comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed.

Please fill in the missing field(s).

Important: To comment on Tycoon Report articles, you must first log in. If you are a paying customer of Tycoon, you may use the same login and password that you use normally. If you do not yet have a login, please take a moment to register below. It’s free, and you only need to do it once.

Register

(email address and password information will NOT be displayed publicly)

Name *

Email *

Password *

Subscribe to The Tycoon Report
By registering, you agree to our terms of service.

Already a member? Log in!

(you will not be taken away from this page)

Email *

Password *

Remember?

Forgot Password?




Important Notice to all stock spammers, scammers and penny stock pump-and-dumpers: You will get no respect here. Don’t bother submitting fraudulent or misleading information in the guise of an article, because we will remove it. Any piece of content submitted on this site can be removed at the sole discretion of the Tycoon staff.