If You Bought MSO Friday, Read This
Even with Friday’s
psychotic action, nothing really has changed since my last report.
The DOW/NYSE-types remain in fine shape as the NASDAQ continues to lag. I have
no idea how long this divergence lasts…just to say, it continues. I actually
believe the NASDAQ…and especially the SEMIS, can break support while
the DOW/NYSE holds up. I don’t think I would have said that months ago. That’s
the short form today as I have something else I want to talk about today.
DISCIPLINE!
psychotic action, nothing really has changed since my last report.
The DOW/NYSE-types remain in fine shape as the NASDAQ continues to lag. I have
no idea how long this divergence lasts…just to say, it continues. I actually
believe the NASDAQ…and especially the SEMIS, can break support while
the DOW/NYSE holds up. I don’t think I would have said that months ago. That’s
the short form today as I have something else I want to talk about today.
DISCIPLINE!
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I received 3 emails over the weekend…all asking
the same thing…”SHOULD I SELL MY MARTHA STEWART STOCK THAT I BOUGHT ON
FRIDAY?” Readers of this column with a strict investing discipline could stop
here. The rest of you…probably the majority…please keep reading.
the same thing…”SHOULD I SELL MY MARTHA STEWART STOCK THAT I BOUGHT ON
FRIDAY?” Readers of this column with a strict investing discipline could stop
here. The rest of you…probably the majority…please keep reading.
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On Friday, I was clicking through channels and
stopped at that “certain business channel” I have not watched in about 10
months. That’s not to say there are no good people on the channel. My problem
is that some of the “headliners” make me ill. But Friday took the cake. This
“certain business channel” actually put the stock ticker up for Martha’s stock
while a couple of pundits were telling everyone she would be found not
guilty. So…all you lemmings get excited about a moving stock and a couple of
pundits frothing at the mouth. You buy in thinking this sucker is going to be
$20 before you can say the word boo. Well, you know the rest of the story.
stopped at that “certain business channel” I have not watched in about 10
months. That’s not to say there are no good people on the channel. My problem
is that some of the “headliners” make me ill. But Friday took the cake. This
“certain business channel” actually put the stock ticker up for Martha’s stock
while a couple of pundits were telling everyone she would be found not
guilty. So…all you lemmings get excited about a moving stock and a couple of
pundits frothing at the mouth. You buy in thinking this sucker is going to be
$20 before you can say the word boo. Well, you know the rest of the story.
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Martha is headed for a small room for a couple of
years and the stock tanks upon opening. It certainly will not help that they
lost their New York station over the weekend. There is a moral of this story.
Keep your feet on the ground and don’t buy into stories. How many times have I
told you when the masses go one way…go the other way. This was a great case
in point…and I have news for you. If she was found not guilty, the stock
would have probably gone down also because everyone was buying into the not
guilty story.
years and the stock tanks upon opening. It certainly will not help that they
lost their New York station over the weekend. There is a moral of this story.
Keep your feet on the ground and don’t buy into stories. How many times have I
told you when the masses go one way…go the other way. This was a great case
in point…and I have news for you. If she was found not guilty, the stock
would have probably gone down also because everyone was buying into the not
guilty story.
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Find a strict discipline that works. It doesn’t
have to be mine but it has to keep you away from a situation like
Friday’s…and I have absolutely no clue which way the stock goes at this
point in time.
have to be mine but it has to keep you away from a situation like
Friday’s…and I have absolutely no clue which way the stock goes at this
point in time.
Gary Kaltbaum