8.22.08

8.22.08

     There are times when investors express frustration at the way the market moves on a day to day basis. They have a natural predisposition to sometimes expect the worst after a big down day like we had on Thursday. Fear is a greater emotional feeling than greed and can lead to moving out of the market too quickly. This would have been the case last week and they would have missed out on an even greater up day on Friday. The most important thing to try to remember is to go with the current trend. The current trend, albeit a somewhat weak one is to the upside. Considering the wall of worry it is faced with, the market has been in a “higher highs and higher lows” configuration for sometime now.

             When you step back and take a broader view, you find that the Major Indices have been performing well in spite of all the bad news. The good news however, the price of oil, has been going down and this impacts the entire economy. From a high to a low, oil has come down $34 a barrel leaving $136 billon extra left in our economy. The markets love it. In the past six weeks the Dow has been up only two of them, but to the tune of 4.76%. The other indices have all been up from 4.25% for the SP500 to 9% for the R2K.

Still the wall of worry is still there and we need to keep a good eye on it.

        We remain at 50% invested, half in the Dow and half in the NDX.

Till next time

 The MTA Staff