Super Stock Blog

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Tag: dow

Are we in for another drop in the stock market?

We saw a massive drop in the stock market yesterday – dropping as much as 1000 points. Today we see furthur markdown of the stocks. As more people get worried, I see better valued stocks and better bargains. This is a great time to start stock picking for valued stocks. We are at stock prices from 10 years ago. If you are playing the long-term, this is a great market. If you are playing the short-term, there’s still more downturn and you can play the short side.

I see support on the SPY at 106, but if that breaks, the next support is 102. If we break these supports, we are in for more drops in the stock market. While it can continue to go down, you know we have the support of the government to prop up wall street. I doubt we will see the lows of 2009 ever again.

Here’s a couple stocks to look at: IGOI and JMBA. JMBA has been falling down since hitting a high of $3.83. It’s at $2.70 currently and it has big support there. Jamba Juice also is making big strides to become profitable. Their smoothie business continues to improve, they have new offerings of teas & coffees, and should be a major player as the US economy improves.

IGOI is still pretty undervalued at these levels. It just had earnings announcement yesterday. It stated it will be fully in Wal-mart by the end of May, it has got into Office Depot and Office Max, and it is planning to get into international markets. Link to original article.

One More Big Drop Before We Have Clear Skies

That’s correct, I’m calling it.  Back in 2001-2002, we had over a 25% drop, then it went up, but it followed another huge 20% drop in the DOW market.  These two drops happened in a span of one year.  We’re facing a loan crisis that we should seriously not be able to come back from.  Japan attempted to bailout their country in the 1990s and still continue to face a stagnant economy that never fully recovered.  We just made a $1 trillion bailout plan to help fix the mortgage security problem.  The money does not exist, but the government is asking international parties, international banks, private investors and forcing tax payers to front some of the amount.  Suffice to say, we are the heart of the economy to the world.   We will survive and will come out stronger.  However, this might be the last time we get to push around other countries to help us.  China will continually try to move their economy from a US export economy to a domestic and international power house.

Back to the DOW, many analysts say we are bottoming out.  However, look at the 1980s oil crisis, you will also notice a 10% drop, a rise, and then another 10% drop.  We will face not only another drop, but possibly more than one.  Obama has been doing a great public campaign to persuade the people that there are better days.  We will survive this problem, but it’s not over yet.  I suggest investors continue to hold their cash in the bank or put it in CDs.  Wait some time to see where things go.  You’ll have a nice nest egg eventually to put in the stock market, but now is not the time.

Dollar Cost Averaging Down

We know the economy will eventually get better.  We are seeing things at the worse: the interest rates have hit bottoms never seen before, job rates are at all time lows, the stimulus package will take at least 6 months to start getting into effect, the stock market is hitting lows seen from year 2000.  The DOW has continued its drop, now hitting below 7400.  Many advisors assume that the market will drop below 6500 before things get better.   One of the reasons is in April, many of the ARM loans will get reset.  We will see another huge round of foreclosures, and the result is more lows for the DOW.

I suggest right now is a great time to just hold your money or buy some commodities such as gold.  If you have a 401k, it’s a good time just to continue your dollar cost averaging down.  You might as well just stay on the sidelines and let the things unravel while building your nest or paying off your debt.

Dow to hit 10,000?

I am a serious believer in stock market manipulation.  This might be common sense or just my irrational thinking, but hedge funds are there to make money; therefore, it is easy for them to take money from the small guy.  This would include you, me, and any other small investor trying to be independent and cut those percentages going to mutual funds, ETFs, and the big investing companies.  As I watch inflation-proof stocks fall with the market, I can only believe the hedge funds are trying to get more and more investors to sell the holdings.  They want to cut out all the margin holders and force brokerage companies to force their investors to sell their stock or put in their cash to make up for their margin holdings.

These same hedge funds will either put the DOW down to 10,000, then put a massive amount of cash in the stock market making another big rally and making everyone look rich, or start buying sooner and put the market up again.  The stock market is bound to have bottomed out soon.  GM has already hit the lowest price in the last 50 years.  When the hedge funds have pushed it low enough, they will then start buying back their own stocks and move the market up to new levels that we have not seen yet.  Let’s see what happens today, and good luck to us all!