Tuesday, November 28, 2006

"Oil and Dollar Woes

brought low the stock market on Monday November 27, 2006. A low dollar and increasing oil prices blah blah blah".

The Standard and Poors 500 Index declined 1% yesterday.

Those who read this BLOG regularly (thanks Mom) should know by now that the only thing that moves the market up are things to buy and the only thing that moves the market down are things to sell. Lately, like for the last two weeks or so there really hasn't been a whole lot to buy (hence the crazy mad buying spree in PNTR last Friday) but there has been a whole lot of things to sell. And yesterday was just a great day to sell.

Now here's what I would like you to think about. In 2005 the day after Thanksgiving was a low volume day. It took three days the next week but the market declined 1% off the price on the day after Thanksgiving. The next day it rebound and hasn't stopped yet.

But in 2004 was there a 1% decline? Same scenario but no just a small decline and then a rebound from that.

How about 2003? Same scenario again but no decline at all just up up up. But this was an aberration.

Because in 2002 there was a 2 day decline by 1% with a rebound after that and in 2001 there was a 3 day decline by 1% with a 2% rebound (in the midst of a bear market) the very next day.

If the shorty's out there are licking their chops and thinking about amazing wealth leading to maybe a Ford Focus under the tree this year - watch your step.

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