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Opportunity to buy in the short run.

August 5, 2011

Wait at least  til tomorrow. the correction will soon end because it is caused by mass hysteria  and distrust triggered by greed and incompetence at the top.  Systemic issues do exist but they are still dormant enough not to trigger wall street systemic collapse at this time. For now the market drop is an opportunity to buy in, however…My

 “however…” has to do with the public of investors not understanding “timing” and not knowing what shares to buy.  Most investors operate from an  archaic notion of analyzing  variables espoused by

classical economic theory

straight from Harvard university faulty PhD  program. For example, there is a variable that is highly predictive of share price movement. That variable is rarely recommended for strong use.  Other variables that are less predictive are recommended for use in the wrong way. For example, bring up on your computer the Dow’s 200 days moving average. Do the analysis right.  Analyze that the graph is going up, up and up. The Dow’s 100 days moving average is also going up, up and up. The 50 DMA is also going up and up, but is tapering off. Even the 20 DMA went up for 6 months and started tapering off a few months ago.  Good reading of the  DMA is just one measure of many that indicate that the market drop is very short-term.

You see, the problem is that the average investor never read my books on behavioral investing because i don’t follow traditional rules of financial logic that come out of Harvard university. nevertheless, if you play by new emerging behavioral rules that work instead of hanging on to traditional economic rules that don’t work  anymore, you will see the opportunity to buy in the short run!

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