Emotional Investors

emotional investorIt's been nothing but green thus far for the markets as more earnings reports and "perceived" positive housing data was released this morning. AT&T and 3M both announced severe losses compared to last year's numbers, but results were once again "better than expectations", which as a result has caused for a lot of buying for the two companies. However, once again we find ourselves in minimal volume trading days, which again shows that indeed the big market movers are on the sidelines, and that much of this market is being moved by day traders and short term emotional investors.

A slight increase in home re-sells caused for a big push in the home builders sector. I'm sure the number has nothing to do with the fact that we are in the most active home buying season of the year. Of course, the year over year number remains horrible, but we usually don't look at the true comparable data these days. Also, conveniently, California has put a moratorium on home foreclosures until September, which just happens to be the entire span of the hot home buying season. So during the hot buying season, what has been the largest selling inventory the past year (bank owned homes), will essentially be non-existent the entire summer.

The absolute blind regard for fundamental data worries me greatly. Not only are we continuing to see markets bolstered up by, what I believe to be, media and government manipulated reports, seasonally effected numbers, and market reactions from trillions of dollars of government spending, but the real technical data (median home prices, deflationary data, and unemployment) remains quite dismal. No such recovery can be expected with such bad data. Indeed, the rally can be refreshing for investors, but I am being very cautious, as even after a 50% retracement we saw during the early Great Depression, markets lured investors back in only to crush them severely worse than the initial crash did. I am trying to take emotions out of investing.

7 comments:

  1. Anonymous Says:

    Do you think the government can keep this up for as long as need be? Where are the big market movers? I got back into Lvs today again during close...

  2. Anonymous Says:

    Amen

  3. G Money Says:

    Got back into LVS, anon? You must be drinking the kool-aid! Better sell at the open tomorrow. It's already down big in AH...

  4. LicensedToKill Says:

    is Kudlow nuts???
    listening to this guy makes me wanna to borrow money to buy stocks :)

    seriously, picked up some srs calls before close today.

  5. Anonymous Says:

    You were saying G Money? Looks like I made the right decision for today...

  6. Anonymous Says:

    shorts are squeezed badly. It will take a long time for bears to stand up again.

  7. hyipinvestor Says:

    Make Money Online From Investment(High Return Liberty reserve Investment Plans Without risk)

    Make Serious and fastest Money in Paying hyips
    Make millions liberty reserve and perfectmoney in paying hyips fastest Real Investment
    Many people today feel like they don't have enough money in their lives. These days having only one stream of income isn't enough. People are always looking for more. Life is getting expensive. People want to be able to go out and do

    what they want, take vacations, have fun, and in general enjoy life. The problem is that they usually don't have enough money or time to enjoy these things. This is where E-Currency Investment comes in.
    Finding the solution to this problem is not easy. Most people fail when they start their own business. Most people will never see the light when it comes to building a successful online business. It's just not something that can be done,

    it takes money, time and a lot of effort to put together something that will work and bring you profits all the time.
    Becoming a HYIP Investment expert is not easy, but it can be very profitable, you can be able to gain monthly interest as high as you will never find in any other investment opportunity! See more information at HYIP Investments.
    The Best HYIP Rating_ The Fairest High Yield Investment Programs Monitoring Service;
    Work at house-make money online
    If you've been having a hard time keeping up with your bills, you feel like you want more money, or you feel you need to grab a hold of your life, then I recommend checking out E-Currency Investment.
    First,You need to have one liberty reserve or perfectmoney account
    If you don't have liberty reserve or perfectmoney account, please sign up a free account
    LibertyReserve;
    PerfectMoney.com
    Second, you need fund your liberty reserve or perfectmoney account. We recommend some good e-currency exchange sites for you
    Ebuygold;
    WM-center;
    superchange
    Last I got paid and made serious profit from following hyips
    Mountain Mining Investment Limited,
    Need fast cash? Get Cash from the fastmoney Trader Team,
    Earn 250%-900% Daily On Your Investment For 4 Days!,
    Seriousinvestorhome,
    Libertyreserveinvestment,
    Security-Investmen,
    Delta Lloyd Invesments Fund,
    Richestinvestment,
    Perfect Lite,
    Team 5 Trade

    You can choose some sites make your first deposits and become rich fast
    mail to me if you made a deposit use my referral link.We will return 25% of your spend instant.100% guaranteed money back. Mail to US
    Payinghyiponline.com is an expert investment advisor and can help with investment services. Choose a Service: online investment, investment make money online, online investment advice,

    online stock investment, online investment service, trading investment online, online investment magazine, online investment broker, online investment services, online investment banking, online investment club, online investment

    company, business introduction, online investment opportunity, online investment calculator, online investment information, online investment bank