Moodys

As if Moody's doesn't have enough problems with the their rating of the CDO's, CSO's, CMO's, SIV's, and having the SEC and the FINRA investigating them along with their stock price being cut more than half in price without the benefit of a 2 for 1 split. Now we find out there was a computer error that gave top rankings to securities that didn't deserve them. Even worse, Connecticuts Attorney General said yesterday he is investigating New York- based Moody's for potential fraud in connection with a possible ``cover-up'' of inaccurate ratings. More fraud is on the way.

I have said it numerous times before---don't believe anything you read or hear.

Analysts

Remember 2000 and the Internet bubble. There were some very famous analysts, (some now in jail) who were saying the most idiotic statements possible. They were talking about Yahoo hitting $1000 a share...Amazon $600 a share...Psinet $400 a share...and others. Yup...people listened to them and lost billions. Now we are listening to this analyst from Oppenheimer named Whitney. She makes one right call and now she is a genius.

Don't listen to her!

Listen to the market...listen to your common sense. One analyst VS the market. Please people..use your common sense.

And talk about common sense..the market down today because the PPI was up...yet the market was up big last week because the CPI was down. So what is the answer? Follow the technicals--that is the answer.

Them Analysts

Now believe me when I say, Goldman Sacs is a fine investment firm. But like every other firm, they make statements that are totally ridiculous and you as an investor must not be drawn in and believe these ridiculous statements.

This morning, G.S. put Amazon on their conviction list, which I suppose means they really like the company. Then they came out with the statement that the company can grow at the rate of 20% for at least the next 5-10 years. Holy COW?! You have got to be kidding me. No one knows that or even has an idea what any company can do for more than a year or two at the most and that is usually a guess at the best. But 5 or 10 years!!!

But even more important..remember...it's not what or how the company does that makes a stock move. It's how the market reacts to the stock that counts. Don't buy Amazon based on what one analyst says. Buy it based on supply and demand of the market.

The Market

The Market ended one of its strongest weeks in a year. All the averages were up and individual stocks outperformed the major averages...if you were in the right sectors. Remember, to outperform the market in general, you must be in strong relative strength sectors, and have stocks or ETF's that are also outperforming their peers. That means sectors like oil, oil service, machinery, and chemicals just to name a few. Then you need to pick stocks and Etf's in those sectors that are also outperforming. Do that, and your odds are better than average you will have a portfolio that will outperform the market.

But remember, even if everything looks perfect, the stock can go south. If it does, have your stop loss and get out of it before a small loss becomes a large loss.

Let your winners run-----cut your losses short.