The bulls and bears are at it again. I was pretty intent on staying on the sidelines (G fund) regardless of what happened yesterday, so that made it a lot easier to watch wild fluctuations in the market as I didn't try to guess what was going to happen. The Dow dropped 50 points within minutes of the market open, then rallied about 90 points from bottom to top by 11:15. After about 2 hours of stability, we had another 80 point drop before a 40 point bounce and a 20 point drop. By day's end the Dow only lost 18 points. Relatively flat considering.
Chart source
http://finance.yahoo.com
I was looking back at some of my market comments from
this time last year and the story was
quite similar. The indices were bouncing around with little hint
of direction. In early March of 2004, after a couple of days of
waffling around, the market took a tumble. It may have been a
reaction to a jobs report. Back then the jobs report was of great
importance as Bush was trying to be reelected and any weak economic data
hurt his chances. The market of course didn't like that.
This year we don't have a presidential election to worry about but we
could still see some fireworks based on the results of the up coming
report.
Chart provided courtesy of
www.decisionpoint.com
Since I am 100% in the G fund, I may be biased toward
wanting to see some sort of rest in the market which will allow me to
get back into stocks at a lower price, but 3 of the past 4 similar
attempted breakouts have resulted in further selling. Only the
breakout in November was successful. The question you must ask
yourself is, do you think we are in a consolidation period, or do you
believe we are ready to see a breakout? Your answer will tell you
the best place to put your money. If someone has the correct
answer, please call me at 555- .....
If you are in the G fund, sit back and try to be patient. Missing
a rally wouldn't be fun but it seems to be the lesser of two evils.
The other is being invested if we get a market break down.
That's all for today. Currently 100% G fund. See you
tomorrow.
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