Wednesday, May 13, 2009

this Pull back had to occur-the long term Lens-Secondary account


Since when does the market go in one direction I know these retail numbers were bad but 
please do not get too caught up in the rhetoric. The market rarely makes a move in simply one direction under the best of circumstances not to mention the mess we just got ourselves out of. A pull back was called for and has started and we may have more to go next leg down I will adding more securities to my equity account. These guys are comical just two days ago they were praising President Obama about his market prowess and declaring the "green shoots" were here.  Every day before that they told you it was a bear market rally. Once they jumped on board we knew it was time for a short correction or buying opportunity as I call it these days Every time the market has a 300 point down swing buy a little more for the equity account Most of the members accounts should be looking fatter and fatter.  On eight straight weeks of upward movement after a 200 plus up day  is not the time to buy it could even be argued that you should move from overweight to underweight when these pops occur but these guys will have you selling at the bottom and buying at the top at every turn if you let them. Buy the dips 
Sell the Pops -Long term we will eventually be higher do not panic- Ok after dramatic rips to the upside sell a little why not take a profit and buy even more stock on dips. We are currently dipping so now you wait or start to selectively add to your secondary account. Buy in stages 
this account is for next year you are not dependent on this equity account right at this moment it was built from excess profits from our Oil trading. Buy the dips lighten up the account when they take it up too far too fast but eventually we will be higher much much much higher

the chart depict the venerable investment banking modelGoldman verses the industrial average over the last 3 years