Investing Wisely -- Update with Recommendations and Personalized Follow-Up

By: Steve Bauer | Sun, Feb 13, 2011
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Update & Recommendations:

In my previous Update, a couple of weeks ago, I suggested that the - September to date rally is exhausted, and you should either be in cash or on your way to cash. By now you should be quite tired of hearing that from me. Unfortunately, not much has changed, in my opinion, except time.

Little or no money has been made, and that is because the "Breadth" of the marketplace has gone sideways or down but turned back up this past week. We now will have to see where that takes us. Negative 'Breadth' means, that the "internal market" has consolidated. In this case, the Indices (Dow, S&P, etc.) do not reflect that situation. These Indices as well as the NYA and Compaq (composite indexes) are guilty of deceiving the public investor - that has been going on for decades.

I continue to be a strong Bear and there are many confirming factors that tangible support this thinking / recommendation.

The imminent General Market Bearish Inflection Point I have been forecasting continues to be delayed!

So, the market is continuing to set up for yet a second (actually third) attempt at a Pullback. My best forecast is: Over the next couple weeks or perhaps some what beyond, a General Market Bearish Inflection Point (a second one for me - remember the first one has not worked very well, but I believe it will) and my important "Conformations" should materialize. (Repeating) this situation (two Bearish Inflection Points in a row) normally does not occur all that often. That means the coincidence of yet another Bearish Inflection Point at what the technicians will call a "double / triple - top" will soon occur.

That suggests that holding long positions in both securities, ETFs and mutual funds is currently not all that wise.

I hope you are following my - Personal / Private Blog. It is boring but accurate!



Something to Ponder:

Quite a number of you folks seem to think that Fed Chairman Bernanke can and does manipulate the stock market. This line of thinking just isn't close to being a fact. The only manipulation is from the "big guns" that have dominated Wall Street for decades. The reason the marketplace is holding up in this current rally is that the big guns are following the exuberant and unwise investors who believe the market is a place to trade securities and not one for purposes of investment. As always, many of these traders will be hurt - and won't have a clue as to why.

Believe me, Mr. Bernanke has his hands full of "economic" problems, which do not include the stock market. Remember, he is the guy who keeps making stupid remarks that investors, more recently, some how convert / interpret to be bullish.

The term "bubble" is totally over used and often mis-used, so I will use it too! This market is over extended, over- bought, pumped up by overly exuberant traders and interest rates are on the rise. Caution is strongly recommended.

Remember, the profits that are earned in most all securities over a several month time frame, in a "bubble" environment, can vanish is a matter of a few days or just a couple of weeks.

Perhaps you just don't want to remember? I hope you do.


If you would like to have further information on my work / analytics or perhaps my professional asset management, mentoring or consulting - services ...

I would appreciate your sharing just a bit about yourself and your investment objectives,

Just send me an Email, and I will respond promptly.


Thank you for your time in reading my "stuff" and continued interest in my work / analytics.

Smile, have Fun - "Investing Wisely",

 


 

Steve Bauer

Author: Steve Bauer

Steven H. Bauer, Ph.D.

Steve Bauer

Steve has several degrees, i.e. post graduate degrees and doctorate and a great deal of (too much) continued education. For seven years, he did a stent as a University Professor of Finance and Economics.

Dr. Bauer also writes for SeekingAlpha.com. His articles can be viewed at: http://seekingalpha.com/author/steven-bauer?source=search_general&s=steven-bauer

He owned a privately held asset management firm and managed individual investor and corporate accounts as a Registered Investment Advisor - for over 40 years.

Professionally he is a financial analyst and private asset manager / consultant / mentor.

Steve can be reached at senorstevedrmx@yahoo.com

Copyright © 2010-2013 Steven H. Bauer, Ph.D.

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