On March 7th, 2008 the Dow reached a double bottom at 11870. While it went through the low for a while, it was able to bounce back up and close at 11893.
Might this be the Eides of March? Could the Dow finally begin to turn back up?
At 8:15am the Feds announced that they were adding $100 billion liquidity to the Market. They did this 15 minutes before the 8:30am scheduled Unemployment news report was released. Why did they choose such a strange time to release this information? Because they knew that the Market would tank at 8:30 when it was released that there were minus 63,000 job created and that January's job creation was revised from -17,000 to -43,000.
What did Bush have to say about this down turn in jobs? "we're in a slowdown..." No shit Sherlock!
Not since the great depression have the number of foreclosures risen so fast. 8 million homes are now worth less than their mortgage. 23% of all mortgages are in delinquency. The US Dollar has reached an all-time low against the Euro. Gold has reached an all-time high and is within a stone's throw of $1,000. A gallon of gas is approaching $4.00. And all Bush can say is that "we're in a slowdown?"
What kind of investment is safe now for anyone. One reporter said that a good stock opportunity was healthcare because that has only gone down 10% not 20% like the rest of the Market. So everyone is in a panich to sell. The answer is "Stop. Don't panic!"
The Stock Market is down approximately 10% this year and about 15% from the October high of 2007. Everyone is in panic mode, must sell must sell. And financial headlines such as "sense of crisis haunts trading floors", or "recession fears rise after US Employment falls..." are adding fuel to the panic's fire.
So what should you as an investor do?
Bottom line...get more investment education. Investors tend to be willing to take the advice of their brokers when the Market goes up. But what happens when the Market turns down and gets ugly? Then brokers can do no right. That is because investors live and breathe on every word the broker says, instead of getting their own investment education. In times like these, you need a great defense, and that comes from education.
Where can you get the kind of investment education you need to stand on your own two feet? Shadowtraders offers trading education.