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April 28, 2006

Follow-up to U.S. "unhappiness" article, Fri., Apr. 28, 2006, 8:15 AM

I understand how Americans are not generally happy with the way things are going. My only point yesterday was that the same people who are complaining, which I guess is now up to 2 in every 3, ought to have an appreciation that market prices for stocks, bonds, commodities, interest rates, and currencies move because of global forces, not at the whim of a few VIP's in Washington, or even a few traders in NYC.

Moreover I feel strongly that politicians in Washington, Ottawa, London, Tokyo or wherever ought to keep their collective noses out of free markets, and stick to the difficult tasks of optimizing international trade, and controlling rules breakers in their own jurisdictions.

As traders, our job is to watch the tape, and to execute strategies and tactics that first protect what we own and then seek to increase it.

Today, I am going to write about Microsoft and Dell because there is a link here. MSFT is down -8.4 pct this morning, which does not happen in a Bull Market when the corporation reports a quarterly gain in sales and profits of 13 and 16 pct.

I am also going to write about Wall Street upgrades of the intermediate and junior precious metal producers based on the modelling of higher metal prices. Weeks and months ago, I stated that this would happen, and it is.

Whether it is economically-sensitive technology stocks or commodity producers, it is our job to be aware of the trends and cycles (and the reasons) of price series movement in markets.

We trade prices. Remember that.

Posted by Posted by Bill Cara on April 28, 2006 08:16:21 AM | Category: Cara Today in the Market