Stock Market Update
Thursday, June 14th, 2007As some of you know, I trade the opening half-hour of the stock market. So I wanted to share some of my thoughts the DOW and my very own stock, Toll Bros (TOL).
The Dow ($DJI): As the Dow is so called reaching new highs, I like to perform simple tests to find out how well it is really doing. This time, I will compare it to real money, not fiat money. So if we compare the Dow to gold, the Dow has actually crashed 50%+! So the “moral” of the story is to compare stocks to real money, not an inflationary index.
Toll Brothers (TOL): I have made lot of money, fairly quickly because TOL is sinking like a rock. This is a perfect time for traders, because there is less risk in going short that there is going long for the simple fact that fear (market panic!!) is a stronger emotion that greed. So the stock will drop faster quicker than it will go up. So I do not anticipate an increase in price for the stock TOL. But that doesn’t mean you can’t make good money!