I am writing this article as an update to one that I submitted 2 months ago when I said that “The market looks good now but we will probably lose this steam by the end of August.” Well it looks like this is happening and all of the reasons I said it would happen are the reasons it is going down. The only thing I was wrong about so far was the Euro weakening even more, but I do think those fears will be right back in play as soon as the American economy begins to slow. I am going to show you some Penny Stocks that you can short during this time and make some jack. You should add them to your list of Penny Stocks To Watch.
The first reason was Obama. Nobody likes the guy…. well nobody in business anyway. He is bad for business, and bad for business = bad for the markets. For some reason people don’t connect consumer confidence with investor sentiment but I think there is a direct relationship with consumer confidence and investor sentiment. Think about all the people out there with 401k’s that will watch them go down with the market and lose confidence to buy things as the see their retirement accounts disappearing. This is obviously going to happen when investors are hesitant to put money to work because Obama is stuck back 2 years ago blaming everything on Bush.
We have no jobs and no jobs = no money for people to spend. Everyone will soon know somebody that is out of benefits and can’t find work. Once you have that person come ask to stay with you or you know they are staying some where else the word spreads and soon everyone will know someone… again going to get ugly. We have to create jobs to sell houses and we aren’t doing that. Sure Obama says we created jobs… but at the rate we are creating them we will still be in 9% unemployment in 2 years. We have to be around 7% for things to be alright. Most states tier 2 unemployment is for above 6% which used to be considered bad.
We are spending money like it is going out of style and getting nothing for it. The health care bill will bankrupt our economy and Obummer doesn’t seem to care. He keeps saying the more we know about it the more we will like it. Well.. the more we know about it the more it scares the heck out of everyone. Hopefully the bill will be deemed unconstitutional. Regardless if this happens market will tank….
Finally as I mentioned above we have to sell houses for the government to grow.. We were paying people $8,000 to buy a house and we still couldn’t sell houses for anything worth reporting. We turned in the worst housing numbers on record in June. So all the $8,000 did is take people who were going to be buying later and force them in early since they didn’t want to miss out on the $8,000.
We have a rising wedge forming on the Down and the S&P and this is a very bearish indicator. Things are about to fall off a cliff. Here are a few penny stocks you can short to cash in on what is about to happen. PCBC short, PEIX short, ABK short, GAP short, SKH short, and IFLG short.
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