A Six Percent Loss In Two Weeks!

The average investor, however, passes most of their resources analyzing company hazard instead of market and sector risk. Market and Sector Review
October 24, 2005
The market is down 6% inch the last two-plus weeks. Six percent is a fairly usual market pullback, in the large picture. However, it’s A small unsettling seeing that sort of move in just 10 or 11 trading years (and one of those years the market was UP 120 points).

So, are we done with this pullback? Or is there more than to come?

First, let’s computer address if we are done with the pulling back. Let’s expression at the possible grounds we’ve had a driblet lately:

• This past times hebdomad was option expiration.

• The Fed’s evident determination to maintain raising interest rates.

• Poor earnings proclamations and lower prognoses of future earnings.

• News that rising prices is significantly higher than the Federal Soldier expected.

This last point was intelligence apparently only to the Federal Reserve. Anyone who drives a car can state us about inflation.

There have got been some in the market aspirant that the Federal would shortly denote an end to rate hikes. But whether right or wrong, the rate tramps don’t look to be ending soon.

OK. Sol we have got not really answered if we are done with the pulling back. So…is there more than than to come?

My sentiment is yes, the likelihood are significantly higher that more downside is still to come.

Having said that, I experience there is a good opportunity we will see a bounciness from these levels. It may just be a small bounce, perhaps a last chance opportunity to unclutter some non-performers out. But the trend, overall, is still pointing lower.

There looks no declaration to the problems facing the market and the economic system at the present time. More importantly, the technical tools I watch state me that supply is firmly in control of the football game and currently have shown no mark of letting go, either. That makes NOT mean value that the market will travel consecutive down, or crash. It doesn’t even intend the market will travel down at all. It intends that the hazard of losing money is significantly higher today than in the past. And since my occupation is to protect your principal in modern times when the market is on defense, we need to exert utmost cautiousness right now, as we have got done for the past four weeks. It would be very unusual for me to get you out of the market at the top (or in at the utmost bottom, either). The chief objective, on defense, is to protect principal, so we have got money to purchase good assets when they travel on sale.

Staying focused on chief saving and your defensive game program should be the primary aim at this stage of the game. To see where you stand, delight phone call us at 877-223-7300 to put up a clip to review. And experience free to check the Mullooly Asset Management hotline as well, where I sketch the early indicants I utilize to determine when the market may be starting to turn.

Mullooly Asset Management, LLC makes not vouch the truth or completeness of this report, nor makes Mullooly Asset Management, LLC presume any liability for any loss that may ensue from trust by any individual upon any such as information or opinions. Such information and sentiments are subject to change without notice and are for general information only. Companies mentioned in this report can be, and often are, owned by clients and employees of Mullooly Asset Management, LLC,. All commentary is based on observing the congeries of investors determinations of historical systematic accretion or distribution. This makes not vouch future continuance of such as trends. Fluctuations in stock terms are not an contiguous contemplation of the quality of a company. Any expressed or silent recommendation contained within, are made without respect of investors objectives. Consult your advisor. Information contained herein have been obtained from beginnings believed to be reliable, however the truth can not be guaranteed.