Agreed. I tell you..VSCI at 1.15 is one heck of a bargain and I sure hope the earnings come out solid because we need to be trading above $2.xx at least if not higher. This company has had a promising outlook since the mid 90's and 15 years later is sure ready to take off. Is this a text book sleeper stock or what?
"That said...first support on the S&P 500 should be the 5 month average of 1070...then the 15 month average of 1050. If we break through those things could get real ugly. On the other hand if we bounce the uptrend continues."
Well there's my 1070 support. We either bounce or test the 1050. If we do test and fail that support look out below. It's nice to be in non-index stocks with a market like this!!!
Hard to say for sure. When I predicted several week's ago the 50 month average would be hard to crack...everything looked rosey in the market. Obama is just playing more politics bashing large banks. I think he could care less about the stock market, but his handlers keep reminding him the market is mid America now! In the end...the large banks will just spin off their trading division and that could even help the stock price in the long run by creating more value for shareholders.
The charts take the emotion and politics out of it for me. I've been mostly out of index stocks & mutual funds for a while now. Basicly I'm in short to intermediate term bond funds in our retirement accounts and only playing micro caps (like VSCI) with my personal funds.
That said...first support on the S&P 500 should be the 5 month average of 1070...then the 15 month average of 1050. If we break through those things could get real ugly. On the other hand if we bounce the uptrend continues.
Clearly, it looks like the market is in a corrective stage. The question is, how long and how low does it go? The other question is how will this effect VSCI. I hate to say this, but as far as the first question, I think we could retest the March 09 lows based on the administration making far reaching economic decision because of politics. Prohibiting banks from trading is going to break them..The bad real estate loans and not banks trading is what caused the meltdown. The market reacted in a bad way the past 2 days to this decision. I do not think Obama will backtrack on this decision, therefore markets are on the way down. Investors like certainty and they have no idea what is coming next from Washington. As far as how this effects VSCI, I don't know. If VSCI can increase sales and profit margins, VSCI could buck the trend. Again, I hope I am wrong about the market retesting March 09 lows, but that is the way I see it.
Time frame for this is 3 to 6 months. Any other thoughts would be appreciated.
January sets the tone for the rest of the year (Historically, that has been the case 90%+ or more of the time). That said, the first 2 weeks usually set the tone for the rest of the month as well. So let's monitor the situation and see where we go over the next 2 weeks and hopefully the rest of the month, year, and decade :)