Hello everyone

Good luck Elizabeth, with your options.

I know how it feels to lose money on options since I was caught up in the drastic stock market drop in the spring of 2000...and my 'in the money options' became VERY 'out of the money options' (meaning worthless) in the blink of an eye!

Since then, I have continued my studies and have become a wee bit wiser, I think. I have made money in recent months by buying 'put' options (rather than shorting stocks since put options limit my losses) on extremely high P/E stocks...but this is a very tricky market and the wild swings are not for the faint of heart. Even the pro's are having a tough time being on the right side of a trade.

I read an article today that was very interesting.
He elaborates about the fall of the Nasdaq but thinks that the next big market to 'bubble up' may just be commodities. Hmmmm...could he be right? As he says, contrarians position themselves while no one else is looking...and then are ready to sell to the swarms of people who come 'late to the party'.

The author of this article says:
"As the NASDAQ bust evolves, it continues to be amazing that anyone remains bullish on the index. Its fundamentals are unbelievably atrocious and its technical charts are ominous. Yet, humans being humans with immense emotional inertia too great to overcome for the majority of investors, tens of millions of people are still fixated on the last great bubble, hoping it will flare up yet again in tech stocks, instead of the next great bubble, probably commodities."

The entire article is posted at the link below.
If you are interested in what he says about commodities, there is a hot link from this article which takes you to another article which builds his case for a coming bull market in commodities....raw materials.

Just some food for thought...

I am trying to stay open-minded about where the market goes from here, but it is wise to pay attention to both the bulls and the bears and to be prepared for anything. ;-)

Best wishes,
Amber




Could it be? Commodities will rise again?