Tuesday, August 7, 2012

I sound like a Broken Record

The stock market is a rigged game as far as I am concerned for short-term traders.  Do not get into believing short-term news events.  Short sellers continue to get squeezed out on any new news of ECB or Federal Reserve stimulus plans either real or perceived by investors.  Usually the market moves up before any Central bank action and then falls sharply on the "actual event".  Time and time again any further action has not worked.  Continue to hold VIX and UUP as fundamentals have not changed.  My opinion is that further central bank action is a long-term negative for the stock market as investors continue to "hope".

While we are waiting for some real economic change, I am looking for some positive groups or sectors for some long-term investments.  Some real investment potential is ahead and as long-term investors you may want to take a look at Senior Living REITS, Heath Care REITS, and natural gas for potential positive areas once the major top is in place.  The market has been prone to a sharp collapses in a short period of time so be ready when the drop occurs.  The recent move up is not a surprise as Central Banks continue to manipulate investor sentiment. What is a surprise is most trading investors continued to be drawn into investing at peak prices by these actions.    

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