Download Moneyization #20 file

Yes, the Administration can point to unemployment and factory utilization and concepts like that to try to sell their case that the U.S. economy is healthy. But the Little People know that 100-pct employment in low-paying jobs like in fast food and big box department stores would put even more people below the poverty line.

That's the thing about economics " it's all about life. Unfortunately the geniuses in Ivory Towers and working at Wall Street don't know the average American. They don't know what happens when good people come to the end of the month a dollar short.

I'll never forget the TV interview with Bush 1 during his Presidential election campaign, and he was talking on camera while standing at a retail store cash register. "My heavens, would you look at that" " inferring it was a piece of rocket science, when a bar code reader was all it was.

As the years go by and you see stuff like that, you just have to nod your head and agree that there is a reason the rich get richer. They live in their own tiny perfect world.

I point this out because trading in securities involves a lot of intellectual dishonesty, manufactured more to increase the volume of transactions than to add any value. It's why I say that it is important to read some of the economic data (like I showed this morning) but, regardless of whether it is important or not, do it with a wide lens.

It is important not to get your chain yanked by statistical data and stories. You read a lot of info from sources like me or Ned Schmidt and others and you take it with a grain of salt. The price of the holdings in your portfolio is the key, as well as the current portfolio cash income against the cost base of those holdings.

Use stop losses, take profits regularly, ensure your average profit is greater than your average loss, and that you have more profits than losses. And when you look at a price chart, try to figure out the trend and cycle motion of the data series, and keep it working for you, not against you.

Then, when you see a day that happens to be a Dow triple-digit loser, like possibly today, you won't worry yourself. You'll take the time to read stuff like Ned Schmidt and others, and you'll take it all in.