Thursday, April 16, 2009

DOW 10000?

Is DOW 10000 by year end a possibility? I don't think so, but you can hear alot more bulls chattering these days than you did just a few short weeks ago. I think the market is going to move back down soon.

I am about is big of a healthcare bear (big pharma excepted) as you will find. There are so many changes in the reimbursement arena for healthcare providers that it will be virtually impossible to forecast earnings over even a 2-3 year time horizon.

I have seen more deflation pumpers making posts than ever before. So if the real money is betting deflation, how is the market going up. If deflation is the big bad wolf--then why is the market trading solidly? Because deflation is done, stability is perceived and inflation will take hold and will drive the markets higher.

I am still a FCX fan and am long AMN and DMND at the moment. I just bought those 2 for a swing trade and may be looking to exit tomorrow.

Every day I see that emotions play such an important role in the success of traders. We all want to see lines such as the title of the post and HOPE. But you can't eat hope, you have to see what the market is giving and try to take a little. How many of you trade for small, consistent wins and then wind up losing it all back on one trade? I sure have on many an occasion. Take control of your emotions. Looking back to my natural gas trade, I was wrong because I was so determined that it should go up. Instead of admitting defeat and taking a small loss, I got hammered and subsequently had to admit I was wrong anyway.

Tomorrow is one of those days that quickies are the best way to play and flat is the most peaceful way to start the weekend.

Charles Payne will be on the show Saturday---CHECK BACK
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