Wednesday, July 11, 2012

Market Update 7-11-12

The vibe of the market has changed.  There’s been a lot of analysts beating the drum for a bear market.  Thoughts do become reality and when you have a lot of analysts and commentators talking about a bear market they are in effect creating it.  That said you can create your own market conditions if you follow trends and the technical setups.  Yesterday’s craziness was the release of a lot of pent up anxiety about the market selling off to a support level.  People are now waiting for some encouragement from earnings numbers this week and the Fed minutes that come out at 2pm today.  

Some of the best plays to make during times of anxiety are in companies that provide comfort and these are companies that sell guns, cigarettes, candy, sweets, ice cream and cheap household items.  My conscience keeps me from buying guns and cigarettes but ice cream, sweets and cheap household items are stocks I’m looking at (WMT, DNKN, TGT, DG).

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