If you paid attention to this post this week starting BMO on Monday, you could have made some nice gains on two stocks that were mentioned in my post. Around 5% gain per day. Not bad for two days. I don’t post often but when I post I want to share with the online community something that I have followed for a while. I also make some bad predictions. I just don’t post them. I want to post another prediction this time on the overall stock market. It’s not that it will crash (of course it will crash at some point. This is not a prediction. It’s been guaranteed). The question is when it will happen: November this year with a few 5% pull back from now to November. When it crashes, it will be REALLY bad. Good luck.
Today's bounce back has been predicted BMO (you could make money if you saw my post the first thing this morning). However, I am concerned about the patterns for these "junk" stocks, meaning their prices are not justified by fundamentals. The only reason why their prices are predictable is they are manipulated by big money. So when big money decide to break the pattern and take chips off table, retailers are screwed. Remember stock market by itself does not generate profits. Big money's profits come from retailers loss. No wonder Buffet never touches these junks.