Are We Back On The Bumpy Train

Wow, all it takes is somebody to say expectations might be worse and we quickly forget how we have just been experiencing a steady gain for the last 3 months. Suddenly people are moving from looking to go long to looking at possible stocks to short.

If you have no clue what I am talking about, yesterday the World Bank stated that the recession will be deeper than their previous forecast. Not a moment later the markets sunk back into their hiding holes, and quietly oil is lurking in the background. Almost looking ready to strike at any moment.

Remember what happened last time we had a down market and oil was plus $100/barrel? Yeah, it was just last year…

As though what the World Bank said wasn’t enough, they continued to say that unemployment and poverty in developing countries will continue to increase.

With the somewhat “gloomy” times still ahead many are now wondering if we are getting ready to ride another down wave in this constant up-down cycle. Executives are already starting to unload their shares to lock in profits from our recent bull-run.

Take out the news and aren’t we just seeing a basic fundamental stock run? Very rarely do stocks go straight up and straight down. We have constant flunctuations. The key is to see if the overall trend stays the same.

Big picture, perception rules the stock market. Although you may not believe something, if the greater population does then you just have to go with the flow. With oil threatening to move higher, our budget deficit rising, and loomy times still ahead, there is not much for many people to stay excited about. If people are starting to sell, then lock in some profits. You can always stay firm, but don’t risk all your profits!