During the past eight weeks [June, 2006] I have been spending lots of time reading articles describing the current market conditions...trying to figure if it really affects penny stock backers.
Are we in a bull market...are we wading into a bear market. Or is the recent rally merely a dead-cat bounce?
The dead cat bounce refers to a short-term recovery in a declining trend. There is a (comparatively) old saying in investing: even a dead kitty will bounce if it's dropped from high enough.
No matter how you slice it...I'm undecided it even matters to penny stock backers like you and me.
For example...stocks rose in Japan this week as reports showed expansion in producing and exports. Markets rose across Asia as backers were encouraged by Wednesday's gains on Wall Street.
Robust takings reports from 2 bellwether stocks gave low-priced share financiers hope that rising rates wouldn't kill profits. The recent sell-off, claimed one economic expert was "just turbulence."
The turbulence, it appears, is continuing on this side of the pool. U.S. Stocks traded flat to lower Thursday as the market took a breather as higher oil costs and downbeat business information curbed Wall Street's momentum. So , what are we to believe, is the market heading up...or heading down?
How does the market look in general terms? As far as stocks are concerned , the S&P index is up just 0.3 percent for the year, the Dow is up 3.4 p.c and the NDX is down 2.9 %. Not sparkling info.
But for low priced share investors, the recent roller-coaster ride that many seasoned blue chip speculators are reeling over, is just par for the course. We know that a low priced share is frequently variable and just as unforeseeable.
While a penny stock could be more vibrant when the market is hopeful, generally, a penny share marches to its own tune. Why? Few investors leap into the field of penny stocks and shares because they are either unwilling or unable to do the work required to exactly forecast what these shares may do.
By their nature, it is nearly impossible to grasp what price a low priced stock share should be trading at, and typical financial proportions and industry comparisons are infrequently effective measures for realising a penny stock's value. Big one-day p.c. gains and losses are not an atypical occurrence for low priced share financiers.
So actually, bull, bear or cat...it's just another day at the PC screen for low-priced stock speculators. The work might be fun...but it is not easy. Of the 14,000 public firms in the U.S, about 3,300 are considered penny shares that trade on the OTC Notice Board operated by the Nasdaq.
Their visibility is low, probabilities are you've not heard about their Managing Director and I doubt they have any institutional following. And while they are highly speculative, the more promising ones have a focused business plans, and solid positions in niche markets. And for now, they're flying below the radar of Wall St
So what do you do in an unforeseeable market like the one we are in? Continue applying the same principles you've always used when searching for that unused penny share. And enjoy the volatility.
Are we in a bull market...are we wading into a bear market. Or is the recent rally merely a dead-cat bounce?
The dead cat bounce refers to a short-term recovery in a declining trend. There is a (comparatively) old saying in investing: even a dead kitty will bounce if it's dropped from high enough.
No matter how you slice it...I'm undecided it even matters to penny stock backers like you and me.
For example...stocks rose in Japan this week as reports showed expansion in producing and exports. Markets rose across Asia as backers were encouraged by Wednesday's gains on Wall Street.
Robust takings reports from 2 bellwether stocks gave low-priced share financiers hope that rising rates wouldn't kill profits. The recent sell-off, claimed one economic expert was "just turbulence."
The turbulence, it appears, is continuing on this side of the pool. U.S. Stocks traded flat to lower Thursday as the market took a breather as higher oil costs and downbeat business information curbed Wall Street's momentum. So , what are we to believe, is the market heading up...or heading down?
How does the market look in general terms? As far as stocks are concerned , the S&P index is up just 0.3 percent for the year, the Dow is up 3.4 p.c and the NDX is down 2.9 %. Not sparkling info.
But for low priced share investors, the recent roller-coaster ride that many seasoned blue chip speculators are reeling over, is just par for the course. We know that a low priced share is frequently variable and just as unforeseeable.
While a penny stock could be more vibrant when the market is hopeful, generally, a penny share marches to its own tune. Why? Few investors leap into the field of penny stocks and shares because they are either unwilling or unable to do the work required to exactly forecast what these shares may do.
By their nature, it is nearly impossible to grasp what price a low priced stock share should be trading at, and typical financial proportions and industry comparisons are infrequently effective measures for realising a penny stock's value. Big one-day p.c. gains and losses are not an atypical occurrence for low priced share financiers.
So actually, bull, bear or cat...it's just another day at the PC screen for low-priced stock speculators. The work might be fun...but it is not easy. Of the 14,000 public firms in the U.S, about 3,300 are considered penny shares that trade on the OTC Notice Board operated by the Nasdaq.
Their visibility is low, probabilities are you've not heard about their Managing Director and I doubt they have any institutional following. And while they are highly speculative, the more promising ones have a focused business plans, and solid positions in niche markets. And for now, they're flying below the radar of Wall St
So what do you do in an unforeseeable market like the one we are in? Continue applying the same principles you've always used when searching for that unused penny share. And enjoy the volatility.
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