Online Stock Trading | Cash is King; Stock Markets Around the World Look for a Bottom

Cash is King; Stock Markets Around the World Look for a Bottom


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Can the Stock Market avoid a 3rd straight BLACK Day?

Once again, Cash was the place to be as Markets collapsed below 2004 lows this past week.  New lows also hit a record, more than 4000 new lows were reached on Friday as many stocks couldn’t hold their ground.  A new bull market can not begin with such ugliness in the Market.  Even worse, put/call ratio couldn’t move higher and hung out around 1.3 thru 1.5 all week long.  Too many option players looking to catch a bottom and a true bottom comes when all give up.

I do not plan to do any sort of bottom feeding at all.  This strategy will not yield me 1000% or more gains and is far more risky than looking for potential HUGE winners.  For now, I will continue to bask knowing I was completely right with this market and until we can get new leadership I will continue with a large cash position.

The biggest worry is what is about to happen in Europe and China.  These two economies are about to get a rude wake up call for two very different reasons.  Europe is in tremendous trouble with their social programs, declining tax revenues will leave European nations unable to pay for those programs.  Furthermore, they’ll more than likely raise taxes and print money perpetuating the problem further.  China’s issue is the decline in European and American economies.  The lack of consumption slow the money flowing into China destroying their #1 source of income for their economy.  Outside the US it will be a disaster for those economies that rely on the US for a source of income.

I am staying in cash and waiting patiently for better times ahead.

Enjoy

Market Speculator

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Comments

One Response to “Cash is King; Stock Markets Around the World Look for a Bottom”

  1. Cash is King; Stock Markets Around the World Look for a Bottom : Monster Stock Trader on October 13th, 2008 2:00 am

    […] Cash is King; Stock Markets Around the World Look for a Bottom Share and Enjoy: […]

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