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..I just called voodoo lady hotline….also known as Deep Gut…. and looked at the magic crystal ball….’cause they been right for 6 days in a row... wow…and she said today it will close over $1.56 .... the magic 8ball said the same thing!
by monday will have a superior start and will break $1.57 watch for a hold of $1.59 into lunch hour and bounce off it all day.. we close at $1.65 the day before Christmas Eve!
...here's the thing though….. and this is hanging over all long term shareholders' heads right now. The market in general is entirely overbought right now. Macro economically, I think we are due for a correction because many companies who have had their stock price return to higher levels simply do not have the fundamentals in place - increasing earnings, more growth, ASO - to justify these lofty prices.
There is a lot of garbage stocks that should not be going up the way they are. They are going up solely on momentum/technical and people hoping the recovery is coming sooner than most of us think. I definitely think a correction of some size in the market is coming. I sold covered calls last fryday on a few of my larger positions and pocketed the premiums.
I'm waiting for a pullback and needed some more dry powder. I cannot say how big the correction would be. But if it is based on history the 1929 crash also had a great stock price recovery followed by an even bigger takedown than the original 1929 crash on October 28, "Black Monday” followed on October 29 “Black Tuesday"….
I hope things do not turn out that way, but it is smarter to prepare for that just in case. Have a few plans in place. That's what I am working on now. There is a lot of dumb money on the sidelines though that missed all the fun that has happened since Nov 9.
Will all those “Hundreds of Billions” of dumb money come pouring back into the stock market over the next few months? That's the big top-down picture!
Thank you for your consideration - Take care of each other!
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