Online Stock Trading | Very Few Stocks Are Setting Up for a Short Term Run

Very Few Stocks Are Setting Up for a Short Term Run


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This market continues to NOT offer up any long term charts for Monster Stock gains!  I am seeing charts set up for a run 1-3 years out, stocks like CAL and UAUA (yikes airlines).  Wait a minute, these aren’t ready to run at the moment.  Airlines need to find a way, rather than charging for bags to develop a new way to drive revenue through to the bottom line.  One way, THE INTERNET.  Overseas flights do provide the ability to connect wirelessly to the internet and could drive enough high margin business for their income statement.  I digress, this market is not healthy for Monster Stock gains.  New highs can not make ground on New Lows and our strong fundamental growers are not setting up decent chart patterns.  I am keeping anything new very small and keeping a tight leash on it.  Cash is king and will keep you ready for the next real bull.

I have been vacationing in the Pacific Northwest, Central Oregon.  Beautiful place during the summer months (never been during the winter) and great golf around here.  With that said, I have been watching the market daily.  Nothing has changed over the past week and a half while I have been away.  Although volume has been a bit better to the upside we need to see healthier charts setting up and an abundant of them setting up.

Too many are reaching out and thinking Obama saving them from this economic bump-in-the-road.  The top 1% of income earners account for the  majority of consumer spending.  Take away their buying power and you’ll see this economy take a nose dive.  Taking away buying power of the rich is not the answer, but setting up an environment where anyone can succeed!

I’ll continue to sit mostly in cash and wait this storm out!

Enjoy

Market Speculator

No Positions 

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Comments

3 Responses to “Very Few Stocks Are Setting Up for a Short Term Run”

  1. SSamson on August 2nd, 2008 10:55 pm

    “The top 1% of income earners account for the majority of consumer spending”

    This sounded a little fishy when I first read it, I’ve often heard the top 1% pay for the lion’s share of taxes but never consumer spending.

    http://www.bls.gov/cex/2006/share/higherincome.pdf
    http://www.bls.gov/cex/2006/share/income.pdf

    Multiply Average annual expenditures by Consumer units to see how much each group spends and you’ll see the 150K+ income group spent 93 Billion in 2006; out of the 5751 Billion whole, or 1.6% of total spending from the most recent BLS data.

  2. Market Speculator on August 10th, 2008 1:11 pm

    Hi SSamson,

    I rechecked your #s via the pdf files.

    If we raise the Top 1% (150k+) taxes (Income and SS tax) here how the #s play out.

    out of the 5.7 trillion spent, 150k+ spent 934,095, 379,000 or 16%.

    Raise just income taxes you remove 46.7 Billion or .81% of spending.

    Raise just SS taxes you remove 56 Billion or .97% of spending

    Do both you remove 99.9 Billion (100 Billion sounds bet 1.74% of spending.

    Now, Obama wants to raise the SS tax and have it uncapped. So let me go through that scenerio…(for the other 3 columns 100K-149k)

    Raising the SS tax to unlimited would remove 171.9 Billion or 2.99% of spending.

    Obama wants to remove 271.8 Billion and put it in the hands of government…would he use it to pay off our debt or make SS solvent…NOPE he’ll spend it all and create more of a mess.

    Thanks for providing this…shows what raising taxes will DO!

  3. NYSE Notches a Distribution Day for my Return from Vacation | Market Speculator on August 10th, 2008 1:13 pm

    […] read my comments on SSamson’s comment here!  Thank you Last 5 posts in Market CommentaryVery Few Stocks Are Setting Up for a Short Term Run - […]

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