Wednesday, August 25, 2010

Run For the Hills!

Another bad day in StockMarketVille. The Dow lost 133 points, due to a huge drop in home sales, ie, "..nobody bought houses last month, I better sell all my stocks!". My big loser was Web Media Brands (WEBM), who lost 10% yesterday, they announced financials a week ago - apparently it took everyone a week to read them. They did announce a smartphone games summit yesterday. I guess nobody wants to go. No, I don't see a correlation between smartphones and home sales either.

As we get toward the end of the year, I think mutual fund managers will start trying to clean up their holdings so when they report out in December they don't have all that crap they been losing money on all year on their books. That and the housing news will make for an ugly time ahead, at least until the mid term elections in November. In my logic, that will put downward pressure across the board. I see the downside a higher likelihood than the upside, at least for a few months. I'm not going to sell everything, but I'm going to take a good hard look at RIM, Yahoo and a few of the bank stocks I'm holding and been getting my butt kicked on. I'm not making any predictions on what I think these companies will do, but I don't see their stocks going anywhere positive for a while. I think/hope today will make a bit of a recovery since the market has been dropping for a few days. But I don't think it will last, so I'm going to actually try to time the market this time. OK, let's be honest, we all do that but don't call it that.

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