Over the past 8 weeks [June, 2006] I've been spending lots of time reading articles describing the existing market conditions...trying to figure if it really affects low-priced share backers.
Are we in a bull market...are we wading into a bear market. Or is the latest rally just a dead-cat bounce?
The dead kitty bounce appertains to a short-term recovery in a falling trend. There's a (relatively) old adage in investing: even a dead moggy will bounce if it's dropped from high enough.
No matter how you slice it...I'm undecided it even matters to penny share financiers like you and me.
For example...stocks soared in Japan this week as reports showed expansion in producing and exports. Markets rose across Far East as backers were encouraged by Wednesday's gains on Wall Street.
Robust revenues reports from 2 bellwether stocks gave low-priced stock stockholders hope that rising rates would not kill profits. The current sell-off, related one economic expert was "just turbulence."
The turbulence, it looks, is continuing on this side of the pond. U.S. Stocks traded flat to lower Thursday as the market took a breather as higher oil costs and downbeat commercial info curbed Wall Street's momentum. Therefore what are we to believe, is the market heading up...or heading down?
How does the market look generally? So far as stocks are concerned the S&P index is up just 0.3 % for the year, the DJX is up 3.4 percent and the Nasdaq is down 2.9 p.c. Not sparkling information.
But for low priced share stockholders, the most recent roller-coaster ride that many seasoned blue chip speculators are reeling over, is just par for the course. We know that a penny stock is commonly variable and just as unpredictable.
While a low priced share might be more vibrant when the market is hopeful, in general, a low-priced stock marches to its own tune. Why? Few investors jump into the study of penny shares because they are either unwilling or unable to do the work required to exactly foretell what these shares may do.
By their nature, it is nearly impossible to understand what price a low priced share share should be trading at, and typical financial proportions and industry comparisons are seldom effective measures for realizing a penny stock's price. Massive one-day % gains and losses are not a uncommon occurrence for low priced stock investors.
So actually, bull, bear or cat...it's just another day at the computer screen for penny stock stockholders. The work might be fun...but it's not easy. Of the 14,000 public corporations in the U.S, about 3,300 are considered penny stocks and shares that trade on the OTC Notice Board controlled by the NAZ.
Their visibility is low, possibilities are you've never heard about their Chief Executive and I don't believe they have any institutional following. And while they're highly speculative, the more promising ones have a focused business plans, and solid positions in niche markets. And for now, they are flying under the radar of Wall Street
So what do you do in an unpredictable market like the one we are in? Continue applying the same principles you have always used when searching for that unused penny stock. And experience the volatility.
Are we in a bull market...are we wading into a bear market. Or is the latest rally just a dead-cat bounce?
The dead kitty bounce appertains to a short-term recovery in a falling trend. There's a (relatively) old adage in investing: even a dead moggy will bounce if it's dropped from high enough.
No matter how you slice it...I'm undecided it even matters to penny share financiers like you and me.
For example...stocks soared in Japan this week as reports showed expansion in producing and exports. Markets rose across Far East as backers were encouraged by Wednesday's gains on Wall Street.
Robust revenues reports from 2 bellwether stocks gave low-priced stock stockholders hope that rising rates would not kill profits. The current sell-off, related one economic expert was "just turbulence."
The turbulence, it looks, is continuing on this side of the pond. U.S. Stocks traded flat to lower Thursday as the market took a breather as higher oil costs and downbeat commercial info curbed Wall Street's momentum. Therefore what are we to believe, is the market heading up...or heading down?
How does the market look generally? So far as stocks are concerned the S&P index is up just 0.3 % for the year, the DJX is up 3.4 percent and the Nasdaq is down 2.9 p.c. Not sparkling information.
But for low priced share stockholders, the most recent roller-coaster ride that many seasoned blue chip speculators are reeling over, is just par for the course. We know that a penny stock is commonly variable and just as unpredictable.
While a low priced share might be more vibrant when the market is hopeful, in general, a low-priced stock marches to its own tune. Why? Few investors jump into the study of penny shares because they are either unwilling or unable to do the work required to exactly foretell what these shares may do.
By their nature, it is nearly impossible to understand what price a low priced share share should be trading at, and typical financial proportions and industry comparisons are seldom effective measures for realizing a penny stock's price. Massive one-day % gains and losses are not a uncommon occurrence for low priced stock investors.
So actually, bull, bear or cat...it's just another day at the computer screen for penny stock stockholders. The work might be fun...but it's not easy. Of the 14,000 public corporations in the U.S, about 3,300 are considered penny stocks and shares that trade on the OTC Notice Board controlled by the NAZ.
Their visibility is low, possibilities are you've never heard about their Chief Executive and I don't believe they have any institutional following. And while they're highly speculative, the more promising ones have a focused business plans, and solid positions in niche markets. And for now, they are flying under the radar of Wall Street
So what do you do in an unpredictable market like the one we are in? Continue applying the same principles you have always used when searching for that unused penny stock. And experience the volatility.
About the Author:
For more information about the Bear Market, Bull Market or Dead-cat Bounce. It Counts Tiny to the Tough Penny Stock, come visit our complete set of resources and extra articles, including some at Stock Trend.
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