They Think We're Stupid

Sometimes I think I am the only one out here who thinks for myself!

People, you cannot believe anything you read. Yesterday, in Bloomberg, there was a headline under "Breaking News" that said:

Nov. 27 (Bloomberg) -- US stocks climbed, rebounding from the market's first 10 percent drop in four years, after Citigroup, Inc. said it will receive a $7.5 billion cash infusion from Abu Dhabi's government. ...

They repeat the information in the body of their article because telling a lie once is not enough.

Do they think we have forgotten the major correction this past summer? Are they ignorant? Do they think we are? Perhaps, they're just trying to capture headlines and readers. Or, just maybe, they're just plain lying to everyone.

On July 16, 2007, the S&P reached 1555 and, on August 16, 2007, it went as low as 1370. That, my friends, is a drop of 185 points or 11.9%.

The last I checked, 11.9 is greater than 10.

Of course, I'm just a bunny and we are known for multiplication, but it is simple math...

Portfolio Annihilation!

In yet another dazzling display of grasping the insanely obvious, the talking heads and "experts" bring you the news for the day (which we simply had to publish for reasons that will become instantly clear):

UBS Securites Cuts Their Ratings on Fannie Mae and
Freddie Mac Stocks From Buy to Hold

And they lowered price targets on Fannie Mae from 88 to 31 and on Freddie Mac from 87 to 28, this according to Reuters news, today Nov. 26, 2007.

On what planet have they been living? Fannie Mae has already dropped from $69 a share on Oct 4 to as low as $26 a few days ago! Freddie Mac has dropped from $64 to $24 in the same time period. And now this "expert" tells us to hold the stock? What a moron!

Technical analysis would have told you to sell Fannie Mae at many points, the final being $59, and Freddie Mac the final being $55. But they would have you hold it now at $26 and $24 respectively?

Portfolio Bunny advises you to use technical analysis or find a financial advisor who uses it. This is only one instance where a single stock could destroy a portfolio. Don't fall prey to talking heads and "experts."

This has been a live report from Portfolio Bunny... we now return you to your regularly scheduled blog.

Market... Going Down!

Well, I don't have to tell you the Market has been going down significantly over the past six weeks. The technicals told us so. But, as of now, the short-term technicals are in the washed-out levels and we will be looking for them to reverse up. When the technicals reverse up, that will be the time to look at putting money back into the Market.

The longer-term technical indicators, all three of them, are still reversing down. The OTC indicator is actually below 30%, which is in the washed-out area. It is the first time that has happened since 2002!

Keep your ears up and your eyes open. Opportunities will soon begin presenting themselves!