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IBDvalueinvestin (99.68)

How the MEDIA fooled most of us, Examples:

Recs

13

May 21, 2010 – Comments (6) | RELATED TICKERS: TNA , SPXL

Lulled us to sleep

No doubt the financial media played a big role in lulling investors asleep. The April issue of Newsweek exclaimed: 'America is Back.' But Newsweek wasn't alone. Below are headlines from April 26, the day the S&P peaked:

Bloomberg: 'U.S. stocks cheapest since 1990 on analyst estimates.'

Bloomberg: 'Biggest banks are back as JPMorgan, Citigroup turn corner on credit crisis.'

Wall Street Journal: 'Consumer mojo lifts profits.'

Wall Street Journal: 'Technical analysts see room to roll.'

Jon Markman on Yahoo Tech Ticker: 'S&P could hit 3,000 by 2020.'

On April 7, the Wall Street Journal touted: 'Dow 11,000 is only the beginning.'

Quite to the contrary, the ETF Profit Strategy Newsletter went out on a limb and noted on April 28: 'With various sentiment gauges having reached multi-year extremes and Investors Intelligence bullishness at 54%, the potential exists that Monday's high - which was only one point short of the 61.8% Fibonacci retracement at 1,220 - marked a significant top.'

6 Comments – Post Your Own

#1) On May 21, 2010 at 2:17 PM, brickcityman (< 20) wrote:

Why not have TZA and BGZ in your tickers then?

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#2) On May 21, 2010 at 2:32 PM, Momentum22 (29.72) wrote:

I thought we were "changing the mentality"...on any given day there are headlines that read the opposite. We feed into it, which is why the media serves it up on both sides...

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#3) On May 21, 2010 at 2:33 PM, IBDvalueinvestin (99.68) wrote:

You can short both TZA & TNA and make money off the fee's that both charge which lowers the price regardless of the indexes moves.

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#4) On May 21, 2010 at 2:37 PM, IBDvalueinvestin (99.68) wrote:

Notice how TNA is up only +1.11 when DJIA is up 58

But if the DJIA was down 58 TNA would probably be down -2

Its a rigged etf

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#5) On May 21, 2010 at 4:24 PM, Momentum22 (29.72) wrote:

#3 - I believe this myth has been debunked (even if you could find shares to short). It only works in limited scenarios and you could really lose your carcass under many different situations. 

On CAPS it is a safer assumption to play and win over a long time horizon if it doesn't work at first.

 

 

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#6) On May 23, 2010 at 12:10 PM, ralphmachio (24.77) wrote:

If anyone still listens to the news at all, it serves them right! What, you can't tell when someone is telling you how and what to think? 

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