Stocks were crushed today - all of them. Why was that you wonder? To be sure, there are many reasons, but surely at the top of the list must be the Federal Reserve. Bernanke and company decided to keep Wall Street happy at the expense of Main Street . The FOMC voted to ignore commodity inflation and the US dollar yesterday, which ignited further rallies (especially in oil) in the commodity sector that weighed on equities. Thanks Ben.
Were you shocked by today's decline? If so, why? Oil is skyrocketing for a variety of reasons, one of which is the weakness in the US dollar. So when the FOMC chose to do nothing yesterday, the oil buyers came back to the market with a vengeance right at the open. Oil closed up $5.34, trading over $140.00-barrel at one point. The Fed could have crushed the speculators yesterday with just a quarter point hike and the threat of further hikes; however, Ben chose to speculate himself - with YOUR money - and did nothing. I say he speculated with your money because his lack of action will cost you more at the pump, and in your retirement accounts. Across America IRAs & 401k's are losing money as they are beaten down by commodity inflation - especially today with a Dow close of -358.41! Thanks again Ben.
The US dollar was hammered against most currencies.
Gold closed up $33.20-ounce.
Oil closed near $140-barrel.
Corn closed +3.01%.
You da' man Ben! Thanks for nothing!
Well we saw it coming a mile away. The Fed dropped the ball yesterday putting in motion today's stock market declines that we took advantage of in a big way. Now that the Dow's major support level was easily breached, we should see a quick drop to 10,900, which could be short-lived. I do not see decent support until the Dow reaches 10,000, then 9,000 under that.
The trend is DOWN as I have been saying for MONTHS. If you are not short, you should at least be (mostly) in cash. We don't drink the government Kool-Aid here at Secrets of Traders folks. We certainly do not drink Wall Street's Kool-Aid either. They can't BS us. If we drink any Kool-Aid, it's going to be served with vodka and a nice cigar - not heaping amounts of nonsense and drivel.
We follow the trend. Analysts don't care about you or your money. CEO's don't care about you. The Federal Reserve doesn't care about you, you're not a Wall Street elitist! Well, we care about you, and that's why we keep hammering that you should do the following...
1) Turn off Cramer!
2) Stop listening to your broker unless he/she is objective.
3) Stop believing analyst recommendations.
4) Stop believing the HYPE.
5) Stop waiting for the Fed or Congress to "do something."
6) Start taking control of your own finances.
7) Start FOLLOWING THE TREND!
8) Buy & Hold? Plffffftt! General Motors traded at a new 53-YEAR LOW today!
9) Want more proof of #3? Goldman Sachs just downgraded GM to a sell - today. Good timing boys.
Today's Trading Tip:
"We don't drink the government Kool-Aid here at Secrets of Traders folks!!!"
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