Saturday, October 11, 2014

Investors gird for scarier days in markets - Yahoo Finance

Investors gird for scarier days in markets - Yahoo Finance



Here is an excellent article about the stock market after a terrible 300+ drop in the Dow on Friday that put the index in the negative region for the year. The semiconductor index also fell so dramatically that you have to go all the way back to 2009 for results that bad.  People believe that semiconductors will remain down due to global economy concerns.  It would be best to stay out of semiconductor stocks until we see some chip companies reporting positive results.



In other news, government bonds received massive buying while stocks were sold off.  TMF, the 3x long bond ETF, is a good stock to buy during these times, and I own it.  Another point in the article is that the big boys are buying a lot of options while they exit stocks.  So, we definitely need to be defensive this month and maybe longer until we see the bottom of this correction.

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