A Little Scholarly Advice... "The Market Is All
Post# of 780
"The Market Is All About Timing..."
We've all heard the phrase...and it's true.
One of the key indicators that I follow, is the daily money flow into / out of various markets. It's no secret (for those that closely follow) the OTC typically "heats up" and becomes an attractive market between Oct - Mar - this is a general rule of thumb, that one can set their clocks to, except...when it isn't.
This is an election year, a HUGE election year, which like the moon, sun and the stars affects the earth, so do elections affect the stock market.
If one were to put the S&P, NASD and DJI under a microscope, and overlay the BIG 3 vs. the OTC Markets, one would not only see those three major markets are up vs. the 10,000+ securities tracked by OTC Markets, but the MFI / daily $$$ flow into the OTC Market has traded in a range of $1.4B to $1.8B daily for most of the summer into the fall, while the MAJOR Markets MF continues to pile in, pushing all three higher and higher.
I have been keeping my eye on the OTC, almost daily, for months, and the MFI/$ range has varied little from day-to-day. So for all those, on a beatdown of your favorite stock(s), giving up hope and knowing end of year "tax sales" are just around the corner, remember a couple of key things...
- Rarely do fish swim up stream
- Is the market in an up-trend, side-ways, or down-trend?
- How many stock / pps runs has your favorite security had in the past 6, 12, 18 months?
- What attracted you to the stock in the first place?
- Has your stock turned quiet over a normal OTC sleep period?
- Why release news if/when the market is being overlooked vs. the BIG 3?
- If you once believed in the stock, and it's been quiet for days, weeks, months, perhaps it will wake up when the market wakes up
- If there's blood in the streets in the BIG 3, and they're in correction mode, it almost always spills over into the OTC Markets, as well...
- Blood in the streets and downticks are perfect opportunities to pick up your favorite stocks on the cheap
- No Bid is typical on stocks gone dormant that lose investor interest
- Always do your DD (along with following your gut, *my gut is usually always right)
Best of luck! Happy trading...