There was an article distributed nationwide, written by the Associated Press, and carried locally in the Asbury Park Press on March 22, 2008. I've re-printed the article here, but dropped in my own comments after each paragraph. The main point to take away from this...
All these firms hold the same investments. There is STILL considerable risk in the group. Why did this happen to just Bear Stearns? One of the first things I learned about investments was when it comes to bonds, think chocolate and vanilla, super simple: when interest...
One of Our Better Tools We've got a tool we rely on here at Mullooly Asset Management called "relative strength." This tool simply tells us which investments are moving faster than the entire market, or moving slower than the entire market. Pretty powerful tool!...
One of the best tools we have at our disposal is something called "relative strength." Look, you can't beat the market, unless the investments you own ARE beating the market. In other words, hanging onto something "just because" will always drag down your overall...
On Friday, the Federal Reserve cut the discount rate by a 1/2 pt. They cut the discount rate -- NOT the Fed Funds rate. Understand, the discount rate is the rate banks and brokers are charged to borrow from the Fed. This doesn't change rates you and I are charged. The...
So...is It Too Late To Sell? No. Not too late. Most everything remains on sell signals. One of the reasons I say this is because it's harder to recover with negative numbers than positive numbers. Avoid losses whenever possible! Look, you tell me which is better:...
How the Bullish Percent Index works To understand how the bullish percent index, our main coach, works, you need to begin with and understand three main concepts. First, the bullish percent index merely measures the percentage of stocks currently on buy signals. It's...
The primary indicator that I follow, the New York Stock Exchange Bullish Percent chart is within 1% of a move from a column of X's to a column of O's. This kind of shift indicates a move from offense to defense. Moving to defense does NOT mean that the market will...
In my previous message, I talked about how we moved to defense twice in 2004, but it seemed the market didn't go down either time. If the markets weren't going down, why get defensive? It's an example of where the "generals" stay to fight, but the "soldiers" were...
As I am writing this, the Dow Jones is down nearly 180 points. Sounds like a lot, right? That's about 1.5% By comparison, October 19, 1987 the stock market dropped 22% in one day. Perspective does matter. Anyway, the last few days, I've seen headlines like: -...
