Stock Preacher

The data is announcing that the institutional side lined money, i.e. Pension managers and Mutual Fund houses have been among the biggest buyers of the DJIA in recent weeks, confirming the growing belief the recession is over. Between July 14 and July 21, when the DJIA gained almost 600 pts to close at 8915, net buying by pension managers and mutual fund managers, the so-called “long-term” or “big” money managers, totaled US$1.9B, according to Thomson Reuters, who analyzed settlement records of the Dow components.The following week, when the DJIA approached 9000, Pensions and Mutual Funds were net sellers but only at US$578M, while hedge funds were net buyers of US$19M in Dow stocks but not after selling US$166M the previous week, the settlement records showed. “There is some momentum lost among pensions and mutual fund investors, but the move is still generally positive,” Shacket said on Tuesday. “These buyers are saying that this market is going to go higher, and not lower any time soon.” The move by these institutional investors into Dow stocks corroborates with economic data and earnings that have been better than expected.

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I am Bullish long term, the internal action of the market tells me that this correction is acting normally, and will soon yield to the long term up-trend.

March 9 to early June was red hot, with the (lagging) DJIA advancing 37% and the S&P 500 running up 41%.Since then, we are having a textbook one-month rotational  correction, sending the DJIA and the S&P 500 South by 6% and 7% respectively.

The Big Q: What does this mean?  
 
The Big A: From my POV, it is a buy signal. This new Bull Market is acting just like every previous Bull Market.

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Discovering Your Penny Stock Investment Strategy!

Various Stock are out there, as well as various investment approaches. The key to success in the stock market is matching the right kind of stock with the right kind of investment situation. You have to choose the stock and the approach that match your goals.

Before investing in a penny stock, ask yourself “When do I want to reach my financial goal?” Penny Stock are means to an end. Your job is to figure out what that end is, or more importantly, when it is.

Do you want to retire in ten years or next year? Must you pay for your kid’s college education next year or 18 years from now? The length of time you have before you need the money you hope to earn from penny stock investing determines what penny stock you should buy.

Here is table give your some guidelines for choosing the kind of stock best suited for the type of investor you are and the goal you have.

This Table give you general guidelines, but keep in mind that not everyone can fit into particular profile. Every investor has a unique situation, set of goals, and level of risk tolerance. Remember that the term large-cap, mid cap and small cap refer to the size of the company. All factors being equal, small-cap companies are the potential to make money fast in the Stock Market. However, you need to know how to invest in Small-cap Stock like we (Stockpreacher.com) did.

Are you Short Term? Long Term? Investor?

Are your goals long term or short term? Answering this question is important because individual stocks can be either greater or horrible choices, depending on the time period you want to focus on. Generally, the length of time you plan to invest in stocks can be short term, intermediate term or long term. The Next Article outline what kinds of stocks are most appropriate for each term length

Investing in Stocks becomes less risky as the time frame lengthens. Stock prices tend to fluctuate on daily basis, but they have a tendency to trend up or down over an extend period of time. Even if you invest in stock that goes down in the short term, you are likely to see ti rise and possibly go above your investment if you have the patience to wait it out and let the stock price appreciate.

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