Market Summary 2/15/07
Federal Reserve Chairman, Ben Bernanke, once again testified in front of Congress today and answered questions about the economy of the United States. There was much speculation that he might say something negative about the economy that would send the current, fragile stock market crashing downward. His public comments have sent the stock market up and down on consecutive days on more than one occasion before. Suprisingly, he made the same positive insinuations that he made the day before concerning the moderately strong economic growth and the low inflation. The stock market only increased by twenty three points today, in contrast to the eighty-plus points that it increased in value after his comments yesterday. This tells me that the market has reached a top and that when the next negative economic report arrives, the walls of Jericho will come tumbling down.
I sold my last profitable stock, an exchange traded fund, for a four percent profit today. An exchange traded fund is a sort of mutual fund that specializes in stocks of a finite, specific category. This particular fund dealt with companies that are expected to make money in emerging markets such as China, India, Russia and South America. This is a fund that I would definately buy into again after the upcoming, inevitable stock market correction occurs. At 4:30 this afternoon, the Microsoft Corporation announced a revised, lower sales forcast for 2007. As a result of this disappointment, I expect that the whole software industry will sell off beginning at 9:30 a.m. tomorrow morning; perhaps even the entire technology sector. This market uncertainty could trigger a selloff in all sectors of the market that could snowball into a panic sell, beginning at 3pm tomorrow. My advice to all investors is to be prepared to “cut and run” tomorrow so as to minimize your own personal financial peril.
On a more optimistic note, my sitting and setlist practice improved today. My tendon pain and throat congestion are minimal. My start time on Saturday has been moved up to 7pm.
Be very careful about the middle,
I.C.